Hagar is right about having a bubble in the heater circuit. I have a 3JH and the top of the heater is above the engine. To get rid of the bubble I routed one of the hoses above the heater and put a "tee" in it. This allows me to bleed the system. I can gently add coolant with a funnel, run it for a while, then top it off. Sometimes it takes several times to get rid of the bubble.
For making hot water I usually run it at about 1600 RPM for about a half hour. This also gets the alternator pumping electricity into the battery.