You need to replace the thermostats. the elements are working, as your water is getting hot.
I would replace both upper and lower thermostats. be sure to set the temps the same for both.
the thermostats sit against the tank and read the tank temperature. if one is malfunctioning, they will over heat the water, causing you to get severe hot water.
also as a precaution, I would replace the temperature and pressure relief valve. if your water is getting that hot, and this has not "popped" then it is time to replace it.
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