punch
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hot punch
A hot, usually alcoholic mixed drink, typically prepared with wine or rum, juice, sugar, and spices.
Auf dem Weihnachtsmarkt trinken wir immer einen heißen Punsch zum Aufwärmen.
At the Christmas market, we always drink a hot punch to warm up.
You can tell from the context whether a hot or cold drink is meant. Adjectives like 'heiß' (hot) or 'kalt' (cold) and the situation (e.g., Christmas market vs. summer party) make the difference clear.
Im Winter liebe ich heißen Orangenpunsch.
In winter, I love hot orange punch.
Hot punch is a very popular drink in Germany, Austria, and Switzerland in winter, especially at Christmas markets. A well-known non-alcoholic version for children is 'Kinderpunsch' (children's punch).
Der Duft von Punsch und gebrannten Mandeln gehört für mich zur Weihnachtszeit.
For me, the smell of punch and roasted almonds is part of the Christmas season.
Common verbs used with 'Punsch' (punch) are 'einen Punsch trinken' (to drink a punch), 'Punsch machen' (to make punch), or 'sich mit einem Punsch aufwärmen' (to warm oneself up with a punch).
Komm rein, wir machen uns einen leckeren Punsch.
Come in, we'll make ourselves a tasty punch.
cocktail
'der Cocktail' and 'der Punsch' are both mixed drinks and can contain alcohol. 'Cocktail' usually means a rather cold drink from a bar, often served in a glass and mixed from several ingredients. 'Punsch' is especially used for a hot drink with juice, spices, and often wine or rum, for example in winter. But there is also cold 'Punsch' with fruit juices. The words can be confused because both drinks are mixed. As a practical rule: in a bar, you are more likely to say 'Cocktail'; at a Christmas market or for a warm spiced drink, 'Punsch' fits better.
Auf dem Weihnachtsmarkt wärmt sich Tom mit einem heißen Punsch die Hände.
At the Christmas market, Tom warms his hands with a hot punch.
Nach dem Essen trinkt die Gruppe zu Hause einen Cocktail mit Limette.
After dinner, the group has a cocktail with lime at home.