Good idea from Ross
The valve's packing nut is under the white knob in your photograph, between the white knob and the body of the valve. I agree that you should "loosen that nut about a half turn and try the [knob] again." Then re-tighten it to avoid leakage. In fact, you could take it completely apart and see what's underneath. Turn the pressure water off first and drain the pressure by opening the faucets.
Also, that particular knob is a very poor choice for a "handle" because it's hard to get a grip on it (you already know this!), but given the limited space there, you may have no choice.
Another option is to remove it. How do you use it? Fully open or partially closed? What do you think it does for you? Reason I ask is that C36s used to come from the Catalina factory with a similar arrangement (the only Catalinas I know of that had this [silly] "feature") and most skippers deep-sixed it because of your kind of problem. Most (99%) of us do NOT have this type of mixing valve and the hot water system works just fine without it.
Someone recently noted regarding these most likely unnecessary mixing valves on the domestic water side: "That's what faucets are for!"
Unless you have an abnormally high hot water temperature output from your hot water heater, the mixing valve is not necessary for safety from the hot water if you're careful.
I've also noted that if you have a high hot water temperature, the hot water will simply last longer if you mix higher hot water with the cold water: the hot water will last longer because you use less of it. Remember, you've only got six gallons of hot water to work with once the engine is off (unless you're plugged in).
Also remember to turn the electrical off when the water is heated: no need to run the electrical all the time. When, or if, it cools off, run the electrical for about 20 minutes and you'll have hot water again.