1. Open the Mail icon present on the Android Phone.
2. Now Click on the menu button then click on Account menu again then Add account.
2. Now fill Email address and Password and click on Manual setup in bottom-left corner of the screen.
3. Choose POP3 account.
4. Next you will find Incoming server settings.
-User name: Enter your username
Password: Enter your password
-POP3 server: pop3.live.com,
-Security type: SSL.
and then click next
5. Now is outgoing server setting for SMTP server
-SMTP server: smtp.live.com,
-Security type: TLS, click Next.
Done!!! Now you have setup hotmail on Android phone.