We had the same problem with burn marks on the bottom and flashing red light etc. Now we just rinse the container out with cold water each time we use it - do not dry, just leave it wet and then add your milk. Heats up perfectly each time. The water lubricates the base of the container, preventing burning. Nice hot coffee every time now. Hope this works for you too!
Very important to not just rinse, but also brush or rub off the invisible layer of milk scum on the bottom each time.
Contact Amazon and tell them of the fault, ask for a warranty replacement or a refund.
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