OK, that clears up a lot. This recipe is what is called a 'mini-mash' or 'partial-mash'. You will be fine, this will likely make a very good beer.
4.5# of your fermentables are coming from condensed extract (dme= dry malt extract, lme = liquid me).
You will need to 'mash' the ~ 2.25# of grains
OK, They use the term 'steep' instead of 'mash'. I've seen this, and I think they are afraid to scare beginners away with the concept of 'mashing' the grain, but IMO, it just confuses things.
FYI - you can 'steep' grains that have already had their starch converted to sugar, but you really must 'mash' grains that are starchy - like your base malts (the carapils is kinda in-between). When you steep converted grains (like Caramel 60), the time and temperature of the water isn't very important, as you don't need to worry about the enzymes.
At any rate, 'steeping' at 152F for 30 minutes is 'mashing' and will convert the starches to sugars - the enzymes are in that base malt. So that's Ok, it is just the terminology I don't like. Follow their directions and you should be fine. You will simply be putting the grains in the bag, and soaking them in the 152F water for 30 minutes.
Another way to say that is - all 'mashes' are 'steeps' (the grain is soaked in water), but not all 'steeps are 'mashes' (you need the right temperatures and times and enzymes for a 'mash').
Taste the 'porridge' at first, and at the end of 30 minutes. You should definitely note a difference in taste and feel the sticky sugars.
2.5 gallons of water for 2.25# of grain is a fair amount of water/grain ratio. 1~2 Quarts/# is more typical for brewers (and there are some technical reason why, involving pH and tannin in the grain - but don't worry about that for now). I see why they use that much water though - it's easier to maintain the 152F with a larger amount of water, and you won't have to go through a second stage of heating/adding water. Follow those directions, you'll be fine - just be aware it's outside what an all-grain batch would be doing, but no worries.
ingredients
1lb wheat dme
3.5 lb bavarian wheat lme (late addition)
1.0 lb pilsner malkt (in muslin bag)
12 oz carapils malt (in muslin bag)
8oz wheat makt (in muslin bag)
1.0 ox czech saaz hops
.5 tsp crushed coriander
1 pkg dry wheat beer yeast
5 oz corn sugar (priming sugar)
For the initial 2.5G water, sanitation is not so important, as it will be boiled. But tap water can be a problem - chlorine can react and cause off flavors. I'd recc bottled water, just to keep the variables down.
Watch for 'boil-overs' things can foam up and make a sticky mess. Some people keep a spray bottle of clean water - spraying the foam can drop the boil quickly. Heed their warning to get the lme mixed well so as not to burn it on the bottom of the pot (what pot do you have?)
When cooling, you want to be careful to avoid contamination. Your 'top-off' water must be sanitary. Sealed bottled water is good. Else, it is recc to boil it, but then you need to chill it and keep it cool. KISS, get gallon jugs of bottled water for this, chill them in the fridge. If you have ~ 2.5G of 40F water, you only need to chill the ~ 2.5G of wort to ~ 90F for the mix to hit the 70F they spec.
70F is probably good for a wheat beer, I typically get to 60F for 'clean' tasting ales. All depends on yeast and style.
Take a look at that How-to-brew site we linked - that will answer a lot of this better than we can, with pictures and everything.
Do you have a hydrometer? That is the best way to know that fermentation is finished. One week is short, I generally allow 3-4 weeks for ales. A wheat beer fermented at 70F will go faster though, but you really want to know that it is done. If it keeps fermenting in the bottle, it can create enough pressure to blow up the bottle - and this can be VERY dangerous.
I'm not sure all growlers are designed to hold pressure of a bottle carbonated beer. Make sure that sugar gets mixed fully and evenly, else you will have some bottles with too much (bottle bombs, or just 'gushers'), some with too little (flat). It is the sugar that feeds the yeast to carbonate the beer. After two weeks, the sugar has been eaten by the yeast and turned into CO2 for the beer. You'll need a capper and caps.
Her's a tip - bottle one or two into a sanitized PET plastic pop bottle (soda water bottles are best, to avoid flavors from the soda). You can feel the pressure build up over the two weeks by squeezing them - it's a nice way to monitor progress. Drink those first, the bottles aren't so good at blocking oxygen, so not the best for long term storage (probably not a problem with your first brew).
What are you doing for sanitation? I highly recc Star-San. It is a phosphoric acid that you dilute, you don't need to rinse it, and it is basically tasteless, and won't stain your close or produce any off-flavors.
But read up a little, and 'walk through' the process before you start - there will always be surprises, the more you 'practice'the easier it will be.
And don't forget the home-brewer's mantra RDWHAHB (Relax, Don't Worry, Have a Home-Brew!). But wait until your wort is safely in the fermentor.
And as they say, welcome to the obsession!
-ERD50