You want to make sure that the heat flow is always between fluids at the nearest possible temperature, to minimize the entropy production from the flow of heat. The best method is to flow the cold coolant in the opposite direction as the hot coolant, so that as the cold coolant gets hotter, it is transferring heat to hotter hot-coolant. If you adjust the pipes right, and make them long, you can do the entire circuit with as close to zero entropy generation as you like. This is the principle by which ducks can send blood to their feet and do so without losing any significant body heat in the feet, although they are immersed in cold water.
For the temperature profile, if you have the hot water be 100 degrees, and the cold water be 0 degrees, and you have a long linear pipe where they touch, then the profile can be exactly linear with a 1 degree difference in temperature at all points, assuming that that heat diffusion constant for the metal is constant over the range of temperature, and the specific heat of water is constant for the range of temperature, and both of these are close enough approximations for a practical heat exchanger.
If the pipe runs from 0 to L, the profile for hot water temperature is:
$T_H(x)= {100x\over L}$
The profile for the cold water
$T_C(x) = {100x\over L} - 1$
so that the difference between them is always 1 degree. You adjust the flow rate so that the heat transfer moves C units of heat energy in a length $L/100$, where C is the specific heat of water, and then the exchanger works with this profile. You can adjust the temperatures to be as close to each other as you like, and the entropy gain from the heat flow is:
$ \Delta S = {Q\over T^2} \delta T \approx \Delta S_0 {1\over 230}$
Where you use the absolute temperature T in the denominator, so that in this system you only make about 1 percent of the entropy you would if you let the hot and cold water transfer heat by direct contact without an exchanger.
These profiles are universal attractors, so if you just set up the appropriate flow rate, you will approach the linear profile with time.