For your 'blazing hot water' you want one of those temp-control mixers on the output side of the hot water tank.
Having (diesel engine hot) hot water is awesome for having hot water, the mixer helps with humans not being scalded by it and is a pretty standard device both for safety and comfort.
For shutoff valves on the engine coolant lines to the hot water tank - I have that.
My hot water tank is located some distance from the engine.
I have a valve on each of the two lines to the hot water tank - basically to isolate that entire portion of the coolant system.
Beyond my desire to be able to isolate the hot water tank, I have heard conflicting and weird information about trying to just put a valve on one side side of the auxiliary coolant ports of the engine for something like this. My valves are both within a few inches of the engine auxiliary coolant ports which from the factory I guess just have a plug screwed in. No idea if weird pulses can happen or something else if the water heater line doesn't have full flow and is shutoff on only one leg. I have just heard scuttlebutt on that, and I wanted to be able to isolate the entire segment anyway.
EDIT: I have a Yanmar 4JH4AE.
And YES, as another poster noted - make sure your hot water tank is off auxiliary ports on your engine pump and not part of the full flow cycle of the coolant
