I'm halfway through this project myself. My pipes are buried in the slab. I think tapping into the cold water line is retarded, because that would give you hot water on the hot side, but also hot water on the cold side.
I ran another flex hose from the bathroom back to the water heater. The hose is 1/2" flexible pipe from HD, about $25 for 100 feet. Slip-on insulation is about $1 for 6 foot sections, and I used 16 of them. I ran the flexible pipe through the attic, so not a big problem. You have to use special fittings to connect this to CPVC, PVC, or copper pipes, but they aren't too expensive. Total cost for all of that was less than $100.
I tapped in at the bathtub because it was accessable, but a pain in the **** to plumb a TEE in there, since there wasn't enough flex in the line. I ended up having to put a series of elbows that allowed me to put my TEE in there. I also installed a shutoff valve, just in case.
On the water heater end, I unscrewed the drain valve and installed an extension with a TEE in it as well. I have a one-way check valve in there, and a hose bib so that I can bleed the air out. I left the last 6 feet uninsulated, hoping that the convextion of hot and cool water would circulate the water, but it isn't circulating, so I'll have to put in a small pump. Prices run about $140 for that. I just haven't done it yet. I'll insulate the last 6 feet when I put in the pump.
In the meantime, I just send the wife into the bathroom a couple minutes before I go in there. The water at the faucet is always hot when I get there. ;-}