Hopping an Extract with just a little water

Hi guys.

I'm interested in getting a super hoppy IPA in the style of NZ's 8 Wired 'Hopwired' and Epics 'Armageddon IPA'.

I don't have a huge pot to boil in and traditionally I simply add the kit malt extract and fementables into my fermentor and swirl it around with the 2 litres of water it suggests.

I have heard with boiling hops that its best to do this with the entire 23 litres (5 gals) of wort but this is not possible for me.

Would it be ok to add all the malt and the 2 litres of water, possibly adding an additional amount of water to account for evaporation, into a pot that I have which would handle it to do the flavor hopping? I'm not wanting to bitter it up as I would have purchased a Muntons Bitter IPA. I'm simply wanting to slam the flavor up with hops like Cascades, Nelson Sauv (B Saaz) and Simcoe.

Any suggestions? I will be dry hopping as well of course. Any suggestions on how much I should dry hop would be ace. I have not tried dry hopping in a sterile hop bag but would prefer that since I go from the fermentor to the bottle through a spriget.

Thanks in advance.

Boil the most water you can and add a little, not a lot of extract. Use this to make a hop tea. Add hops @ 10, 5, and 0 minutes (5minute aroma steep) say .5 oz at each interval.
Add the hop tea as part of your volume in your fermenter.

I would dry hop with .5-1 oz of whichever hops you are aiming for.

Where you say 5 min aroma steep, that is, boil is turned off, let the hops sit in it for 5 mins? The other hops would have been taken out when the boil is over and the steep begins?

And with the dry hopping, would using a hop tea bag hurt the flavor? I will be using 500grams of DME in my next brew. I can add that to the hop tea? Or less?

Thanks mate. I have never used so many question marks in my life! Or have I?