From your application tray, open the "Email" program. The first screen will look like this:

Click on next, and then enter your full hotmail email address and password.

After clicking next, choose "POP3 account".

Edit the details to match those below. You will need to complete your username to equal your full hotmail email address, change the POP3 server and change the Security type and Port.

Click next and do the same again on the next screen copying the details from below, this time changing the SMTP server, Username, Security type and Port.

After clicking next choose your prefered settings for how Android checks for email and notifies you.

Fill in the details to suit you. The program can host multiple accounts so it's a good idea to enter a useful account name. The "Your name" field will be used on outgoing emails.

Once you've clicked done you're presented with your inbox which will begin synchronizing with your online inbox.