A portable electric appliance (1, 23) such as a hand held hair dryer uses a brushless electric motor (13, 25) in combination with a secondary fan assembly (14) and/or an air scoop (24) to redirect air toward the motor (13, 25), to maintain a cool operating temperature. The appliance includes a control circuit (50, 80, 94, 102, 110) for controlling the brushless motor (13, 25) and other appliance features. The control circuit and the coil windings (21) of the brushless electric motor are designed to run the appliance at a relatively low current to accommodate a higher operating voltage, thereby operating at a low wattage for reducing extraneous or waste heat. This facilitates placement of the control circuit in a small, portable appliance, and may enhance operation of the appliance in certain modes such as a hair dryer “cool shot.”