Yes, your inlet temps do not seem excessive at this point. If using straight water, you can inject a small amount either on the outlet of the IC, or a small amount into the turbo.

The issue with the controller you have and a smaller jet is the system will probably not work as advertised. The pumps are so oversize compared to the jets, the unit will probably come on at 50% or more and ramp up very quickly. If using a smaller jet, say M5 or smaller, it will act similar to an on/off system.

I'm not trying to put down the system, just be ready for it when you begin to tune with it.