IIRC it was more like 120-130 degrees. McDonalds chose a higher temperature under the assumption it would cool a bit on the trip home, and be a normal temperature by the time you drank it.

Edit - it's in the Wikipedia link:

> Liebeck's attorneys argued that, at 180–190 °F (82–88 °C), McDonald's coffee was defective, and more likely to cause serious injury than coffee served at any other establishment.

In case it's not at the top of anyone's mind, water boils at 212 F / 100 C.