I'm interested in using a Peltier device in conjunction with arduino as a precise temperature controller. I've followed the example below and have switched out batteries with a 12v power supply. After switching to the power supply the temperature gradient improved but the Mosfet became scorching hot. Although you might be inclined to say throw a heatsink on and all will be well, the end use would be a compact solution that would not favor the use of a heatsink. Are there any design changes that could be made so that I can avoid this heat issue?
http://garagelab.com/profiles/blogs/how-to-use-a-peltier-with-arduino