And important thing to know first is your boil off rate, this will affect the amount of your sparge water. You can test by boiling 6-7 gallons of water for an hour and then measure the volume in the kettle after you've cooled it down (because the level will be 4% more when at boiling temp due to expansion). My boil off rate when I used to boil outside on a propane burner was 1.5 gallons per hour. With my new electric Robobrew indoors I only boil off a half gallon. Once you know your boil off rate you will know how much wort you want into your kettle. So say you boil off 1 gallon in an hour and you want about 5.5 gallons of wort into your fermenter (to account for trub loss and such for a total of 5 gallons into your keg) you will want to start your boil with 6.5 gallons of wort. (*Note - If you're using a lot of hops in a beer keep note that each ounce of hops sucks up about 12oz of wort. So if using many ounces factor that loss in as well and use that much extra water). Now, say your recipe is 5.4kg as above (just about 12lbs US)... you can use a common water to grain ratio of 1.33 quarts per pound of grain (gonna do this all in US metrics). 12 x 1.33 = 15.96, so lets just say 16. Divided by 4 and that is a starting strike water of 4 gallons. There you go, you start with 4 gallons of water for the mash. Next, you use a sparge water calculator which will take into account grain absorption. I have one in a beer app on my phone. It asks me for the following info:
Grain weight: 12lbs
Boil Volume: 6.5 gallons
Mash Water volume: 4 gallons
How many sparges: (this is in case you're doing a double batch sparge for example. For now we'll ignore this)
At the bottom of the app with this info entered it tells me to use 4.06 gallons of sparge water.
So there's a general idea. Know your boil off, use whatever water-to-grain ration you want, anywhere between 1.25 - 1.5 quarts per pound of grain works well, and use a sparge water calc. Keep in mind, the higher your water-to-grain ratio the less water you'll have for sparging. Hope this helps a bit.
Rev.