The sidewall portion of a cup or other container for a heated beverage or other hot liquid comprises a relatively rigid outer wall and a relatively flexible inner liner. The wall and liner are attached together at respective upper and lower circumferential bands and at least an intermediate portion of the liner between the upper and lower circumferential bands is separable from the outer wall, to thereby form a sealed void between the outer wall and the inner liner which extends circumferentially along the entire comfort band and which defines a comfort band encircling at least a middle region of the cup. In one embodiment, a liner preform is placed on a tapered mandrel provided with selectively heated circumferential bands for sealing the upper and lower circumferential bands of the liner to an inner surface of the outer wall. Preferably, the container is a stackable disposable cup with a liner formed of a heat shrinkable material which is activated (i.e., has its tension released) only after the cup is filled with a hot liquid.