They can be fed dry. When I soak, I use warm water. How much water depends how soft you need to make it. Be warned it does not take hardly any water at all to get them mushy.
I try to use only enough water so the pellets will soak all of it up. Lots of nutrients will be in any left over water, so use it or soak a few more in any left over water. If you feed it dry, I would crush it up a little first.
As everyone mentioned above, I do pretty much the same.
Bought my first bag of Mazuri about a week ago and each pellet is about an inch in size.
Feed my Greek tortoise hatchling 2 pellets ever 3 or 4 days mixed in with his greens.
I just use warm tap water and place just enough water to cover the two small pellets and they become soft within about 3 minutes.
I have dedicated containers that I soak it in that I don't use for anything else. I just put a little warm water in and wait a few minutes. Start with just a little water and gradually add more if you need it to reach the consistency of mushiness you are looking for. You don't want to be pouring off exces water as that will take nutrients with it.
In time you will get a feel for how much water you need.
I'm the same... I got through a bag yesterday and made a little up, Peaches loved it. But she left her greens. So today I've just chopped up her greens and mixed everything together so she will get a mix of it all with each bite. Once she is out of her soak I will unleash her on it!