Dynamically Adjustable Hot Water Heater?

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It occurred to me that combining really cold water with really hot water to get warm water is inefficient. Why not have a device that supplies water to the faucet at the exact temperature that I want? Does such a device exist?

I'm looking for something that allows me to connect a cold water supply line to a "heater" and then to a faucet (special, regular, whatever gets the job done). This device would then have a temperature control (ideally next to the faucet) so it could vary the temperature that comes out of the "heater" from cold (ideally as cold as the supply line) all the way to hot (say 120F or so).


I had a moen tub faucet that you could set the temp then just turn the water on or off and it would be the same temp each time, minus the time the hot water to travel from the hot water heater. You could solve that problem by installing a circulating pump and keep the hot water right at the faucet.

Not sure if they make a vanity faucet that has a preset temp control however.
 
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