Water Is Getting To Hot In Water Heater. What Does It Mean That The Heating Element Might Be Grounded

Who said that, and why?

Sounds like you need to adjust the thermostat.
If the Element Grounded, it should have tripped the breaker(it is physically in contact with the enclosure.
I have seen Elements Warp and Touch ground, like in a Hot Tub Heater in the Stainless tube, I would bet it was from the Heat being on with no water?