Why is my coffee coming out watery?

Watery coffee can be caused by a dirty or unlubricated brew group, a grinder set too coarse, or the machine still completing its self-adjustment procedure. Brew 5 cups initially to allow the self-adjustment to complete, and if the issue persists, try adjusting the grind setting knob to a finer (lower) setting — brewing 2 to 3 drinks before assessing the difference. You can also remove and rinse the brew group under the tap, then lubricate its moving parts. (Page 20)

From the official Philips 1200 Series Fully Automatic Espresso Machine manual, page 20

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