how big is the waterblock compared to the peltier? Could you fit 2 waterblocks? (The only thing I see 9 possibly, I may very well be wrong, so I'm speculating.... ) I think the time it took is a sign of not enough heat transfer surface, as well as the peltier not working right. Was the peltier tested without the waterblock attached? I ask just because the thought crossed my mind that it could be a flow issue with the waterblock also. Just something to check.
I Love this project! Your a man after my own heart when it comes to DIY.