As far as cloudiness, Susie said in her tutorial:
"...I then zap test. Yep, no cooking, no waiting hours or weeks, just 10-15 minutes. I have yet to be zapped after making 9 batches of various soaps using this technique. So, if you like, and are in a hurry, dilute now. However, I am not promising clear soap if you dilute now. It will clear up eventually, even if diluted, if you use 0% superfat and properly weighed and made the soap. But it may not be clear right away. I have some of this laundry soap that was white when first diluted(pulls jar out of cabinet) a couple of weeks ago, and it is clear now. But it was VERY not clear when first diluted. So, don't come complaining to me if it is cloudy, OK?..."
"...should I dilute with cold water or warm?..."
Dilute with cold or warm. Either one will work. Cold will take longer, but if you're not in a hurry, it's not going to hurt anything. I just add water to the soap paste and let the mix sit on the counter for a day or so. If you're in a hurry, add heat. Susie explained: "...Once I add half the paste weight (in this case about 32 oz) in water, I then add heat, and break up the soap paste to increase surface area. I only add heat to speed dilution, not to complete saponification...."
I (DeeAnna) will also add that I use distilled water to make and dilute my liquid soap. If your tap water is "hard", the minerals in the water can make the diluted soap cloudy. Cloudiness from "hard" water can make you think the soap is not made correctly, even though the soap is fine. Distilled water does not have these minerals, so it won't cause this type of problem.
"...nd after adding 50% water, is the rest water I'm adding adjusting consistency? so when I think its thick enough I stop? ..."
The short answers are -- yes and yes. Susie says: "...Once I add half the paste weight(in this case about 32 oz) in water, I then add heat, and break up the soap paste to increase surface area. I only add heat to speed dilution, not to complete saponification. This will not be enough water, but it is where you begin. I then add about 4 oz of water at the time until I get down to one or two small lumps of soap paste. I then add about a tablespoon of water until I am down to one small soap lump. I then stop, as this will melt while the soap is cooling enough to handle it. Write down how much water this took, so you know for the next batch...."