The majority of stars in the universe has formed in disc galaxies with masses similar to that of the Milky Way. Ab-initio cosmological hydrodynamical simulations of the formation and evolution of galaxies in a Lambda Cold Dark Matter universe have long suffered from serious problems in correctly modelling the star-formation history and structure of disc galaxies. We first use idealized semi-cosmological simulations to gain a better understanding of processes leading to problems in disc formation simulations. We add rotating spheres of hot gas to cosmological dark-matter-only simulations of individual haloes and follow the formation and evolution of galaxy discs from the cooling gas. The initial orientation of the baryonic angular moment...