You may be having a problem with the batteries you're using. I've found that all my LED lights make more or less heat depending on what I feed them.
With NiMH rechargeables, my E20 makes more heat over a given run time than when using L91 primaries. Try different cells and experiment with it. If your heat problems with it don't abate on a different set of cells, then you might want to exchange it for a new unit.
Of all my lights, my E20 still sees a lot of use as it's simple, has a long run time, and has been a very sturdy light for me. Still one of my favorite lights.
(I use my E20 on a TwoFish bike block on my bike helmet with L91s because I get a better run time and slightly more power than one of my Quark AA^2's. The Quark on turbo is definitely more output, but less than half the run time. I prefer the L91's because they're less than half the weight of NiMH rechargeables, and when it's on my head, that weight makes a difference.)