Yeah, I'd start off with 6 gallons. Your going to lose a lot of water. When steeping, I don't even bother measuring the amount of water. I grab my stock pot, put about 2 gallons or so of water in it, get it up to about 160-ish on the stove, and then dump the grains in. My wife found a really good s.s. strainer that I use to dump the water with grains through. I then pour all that into the keggle, fill the rest with hot tap water up to 6 gallons, and then flame on! Not really worried about clean water at this point as it is going to be boiled for an hour any way. I still use splash aeration. I have a hose coming off the keggle and place the fermenting bucket a couple of feet below it and let it fill up that way. Makes nice bubbles when transfering.