You only measure mash efficiency right after mashing (only if you're doing an all-grain mash). It helps figure out your mashing process and how good/bad/consistent it is. Brewhouse efficiency is also only when doing all-grain, but it measures efficiency after the boil. I don't use mash efficiency numbers since I really only want to know what will be happening after the boil anyway.
If you're using extract only, there is no such thing as efficiency. Malt extract has a specific points/pound/gallon number that you can easily compute your gravity numbers with. If you know how much your boiloff will be, you can crunch the numbers ahead of time and figure out exactly what your gravity will be in the end.
Since adding water is going to dilute a thick wort, or make a regular wort more thin depending on your perspective, I would recommend taking a gravity reading before and after. Only dilute if your wort has higher gravity than you want it to, or if your only mission is to get to a certain volume (if doing a partial boil, or if you have less wort than you intended to ferment) regardless of gravity.