You want between 1-1.5 quarts of water for every 450 grams. This is from John Palmer's How to Brew, and while it's talking about mashing, similar principles of water ratio apply.
From Palmer's How to Brew:
"The grist/water ratio is the least significant factor influencing the performance of the mash. A thinner mash of more than 2 quarts of water per pound of grain dilutes the relative concentration of the enzymes, slowing the conversion, and leads to quicker denaturating, but could ultimately lead to a more fermentable mash, because the enzymes are not inhibited by a high concentration of sugars. A stiff mash of less than 1.25 quarts of water per pount is better for protein breakdown and results in a faster overall starch conversion, but the resultant sugars may be less fermentable and could result in a sweeter, maltier beer."
When steeping in an extract, I would hold it to half an hour for time. However, in my opinion, if you're steeping grains, you might as well go into partial mash at the very least - get more fermentable sugars, and give yourself more options.