Bring water to a boil in a stainless steel stockpot. Place coffee in muslin bag; tie loosely. Place bag in boiling water. Cover and remove from heat; let stand 10 minutes. Uncover and carefully dip bag up and down until coffee reaches desired strength. Remove bag; discard. Cover stock pot, and keep warm over low heat until ready to serve.
Ladle hot coffee into a warm coffee pot. Serve immediately.