A brewed beverage appliance uses a specialized pre-packaged beverage container and a related method of brewing a beverage. The container comprises a cup-shaped base having openings at the bottom. A plurality of roasted, whole coffee beans are contained therein. The appliance has a blade that punctures the cup and then grinds the beans while they are still in the cup. Heated water is delivered to the cup and passes through the ground coffee causing brewed coffee to emit from the openings in the bottom of the cup and into a container such as a coffee mug.
