You can definitely steep the grains in the pot on the turkey fryer. Get the water up to temperature, turn off the burner, add the grains. If it loses 1-2 deg F during the steeping time, it is not a big deal. If you want, you can throw a blanket, sleeping bag, or towel over the pot to give it some additional insulation.
Heck, I do full-volume, no-sparge BIAB and mash with my turkey fryer and an old surplus US Army blanket.
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