Efficient cooling is needed, for example, in traction motors which face regularly high torque peaks and generate high stator Joule losses. This paper studies the feasibility of the direct liquid cooling in the thermal management of a low-power low-voltage permanent-magnet machine. A tooth-coil axial-flux permanent-magnet double-stator-single-rotor test machine was first equipped with indirect liquid cooling using water cooling jackets and then with direct winding cooling. The winding material used is a hybrid conductor comprising a stainless steel coolant conduit tightly wrapped with stranded Litz wire. The performance of the motor is examined at various power levels using oil or water as the cooling fluid. The results confirm that the proposed direct coolingmethod is practical also in small machines, and furthermore, it offers significant improvements in the machine thermal management, especially, in cases where stator Joule losses dominate.