I steep in 1-3 quarts of water per pound of grains. Heat the water up to about 160-165°, pour in the grains, cover and pull off the heat. I do this in a pot separate from my boil kettle so I can heat up my boil water. I also heat up about a gallon in another pot.(yup, that's 3 pots) When the grains are done steeping(when the water in my boil kettle is almost boiling) I pour them through a strainer into my boil kettle then rinse with the water from the 3rd kettle.
I honestly don't really even time my steep. I probably should but I don't. Not sure if it makes much difference.