I see what you mean.
Keep the screen wash pump, to circulate the water, but why not have the outlet and the inlet of the water tank right at the bottom? The hot water returning to the water tank will instantly rise to the top, and the cooler water stay at the bottom. You could do away with the solenoid valve then.
Your not heating a huge amount of water. I would have thought it will heat fairly quickly, just by heat transfer.
Or..... why not make up like a grid, out of a few strips of copper pipe, inlet and outlet coming out of the tank, and send the engine coolant around it, controlling it with a solenoid valve.