An apparatus for cost-effective and efficient cooling of an active element. The active element may be a magnetic element such as an inductor or a transformer having windings and a core. A thermally conductive vessel has a cavity that is adapted to conform to a surface of the active element, with a small gap remaining between the surface of the active element and the surface of the cavity. The winding is adapted to have a uniform surface, by utilizing an edge winding or a machined winding fabricated from an extruded tube. A thermally conductive encapsulant fills gaps in the apparatus to further improve cooling.