According to Palmer's HTB, page 134:
...there are two kinds of malt...those that need to be mashed and those that don't...
...caramel and roasted specialty malts need to be crushed...the more finely the crush the more completely you can extract the sugars...
Steeping specialty grain is like making tea...crushed grain in 150F water for 30 mins...to get as much of the available sugar dissolved in to a wort...to be used with extract in the boil...
Page 136:
For best flavor results the ratio of steeping water to grain should be less than 1 gallon per pound.
(NOTE: I think I remember reading that if you make the steep thin (more water) then you get more fermentables, if it's thick, like an oatmeal, you can make a maltier brew)...
Page 141:
Mashing is steeping that hydrates the malt, gelatinizes its starches, releases its natural emzynes, and converts the starches to fermentable sugars...
...water ratio 2 quarts per lb of grain at 150-155F for 60 mins...drain wort from grains and use an equal amount of sparge water (as used in the steep)...stir in the grains ans allow to settle and drain again...DONE!!
Page 142:
Warmer temps will produce a more dextrinous wort, lower temps will make a more fermentable wort...
Page 123-126 explains which grains need to be what...
Anyone else want to try?