I never knew about the water! Great idea, certainly worth a try. I tried cutting the food into smaller pieces and that seemed to cut down on the debris significantly, but who wants to add that chore (mincing the cat's food) to my list?
I'm not very surprised about the cat's reaction to the dog. A few weeks ago I was walking with my daughter and her dog when I grew tired, really tired suddenly. I had to stop and sit right there on the curb. A cat lived at the house I randomly chose. The dog stood next to me. The cat walked up to the dog, sniffed him, and gave a gratuitous scratch on the nose :) :) :)
I love a cat with spirit, but that was a bit much.
Don't take the dog back with you. That is a very funny story (even with the blood).