lau
mild
A temperature that is pleasantly warm but not hot; lukewarm.
An einem lauen Sommerabend saßen wir noch lange draußen.
On a mild summer evening, we sat outside for a long time.

mild / lukewarm
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mild
A temperature that is pleasantly warm but not hot; lukewarm.
An einem lauen Sommerabend saßen wir noch lange draußen.
On a mild summer evening, we sat outside for a long time.

You can tell whether the literal or figurative meaning is intended from the noun. If 'lau' refers to the temperature of air or water, it is meant literally. If it refers to a human reaction such as applause or interest, it is figurative.
Ein laues Lüftchen wehte vom Meer her.
A mild breeze blew in from the sea.
In the literal meaning, 'lau' (mild/lukewarm) is often used positively and poetically for pleasant temperatures. Especially common are the combinations 'ein lauer Sommerabend' (a mild summer evening) or 'ein laues Lüftchen' (a mild breeze).
Wir genossen die laue Nacht auf dem Balkon.
We enjoyed the mild night on the balcony.
In the figurative meaning, 'lau' (lukewarm) describes a lack of enthusiasm and has a negative connotation. Typical combinations are 'lauer Applaus' (lukewarm applause), 'eine laue Reaktion' (a lukewarm reaction), or 'laues Interesse' (lukewarm interest).
Die Reaktion des Publikums auf den Film war eher lau.
The audience's reaction to the film was rather lukewarm.
hot
'heiß' and 'lau' both describe warmth, but they contrast in intensity. 'heiß' means very warm or too warm to touch or drink. 'lau' means only slightly warm, often not really hot and not cold. With drinks or food, 'lau' often sounds somewhat negative because something was actually supposed to be hot. Figuratively, 'heiß' can seem intense or passionate, while 'lau' suggests little enthusiasm or little energy.

Der Tee ist schon lau, weil er seit einer Stunde auf dem Tisch steht.
The tea is already lukewarm because it has been sitting on the table for an hour.
Paula hat sich beim Frühstück am heißen Kaffee verbrannt.
Paula burned herself on the hot coffee at breakfast.