The victim has undergone three surgeries to remove dead tissue and muscle, as well as major skin-grafting work. She has further surgeries scheduled to transplant muscle to strength her arm.
The Wellington gourmet biscuit and condiment manufacturer was sentenced at Wellington District Court for failing to take all practicable steps to ensure the safety of an employee.
As well as paying the employee $45,000 in reparations it was also ordered to pay a $12,500 fine.
The judge referred to the case as "bad offending" that resulted in a "mutilating injury".
A WorkSafe New Zealand investigation found there were no written procedures for cleaning the machine, and that the guards on the machine were left open during production and cleaning.
The keys to the guard were also left in the machine instead of only being accessible to authorised staff.
The manufacturer's guard which came with the machine, was also removed in order to enable easier cleaning, said WorkSafe New Zealand's chief inspector, Keith Stewart.
"Had the guard been in place, then the victim's hand would not have been caught and ultimately burnt.
"Any cleaning should have been done with the baking plate cool and the machine locked out."
Meycov Food Limited told NZME. they would not respond before consulting with a lawyer.