Remove the label from the can of malt extract, wash the can, and place it in a pot of hot water to soften the syrup and make it easier to pour.
Place 1-1 ½ gallons water in the brewpot, and bring to a boil.
Turn the heat off. Place the grains in the steeping bag, and steep in the hot water for 20-30 minutes. Then remove and discard the spent grains, and heat the water again to near boiling.
Turn the heat off (on an electric stove, temporarily remove from burner). While stirring the water with a long-handled spoon, slowly pour both cans of extract into the pot. Stir until materials dissolve, then return to heat and bring to a boil. Note: When it first boils, the mixture will foam. Reduce heat, or remove from burner and foam will subside. Turn heat back on, and repeat process until foaming stops. Add approximately ½ the package of hop pellets and stir them in, and then boil for 30 minutes, adding the rest of the hop pellets for the final 1-2 minutes of the boil.
Place 3 gallons of cold water in your fermenting vessel, and slowly pour the hot mixture into the vessel. Fill with additional cold water up to 5 gallons.