Hi, Carol,
No, don't put water in the outer pan with a cake; it will effect the baking and 
texture.  I would not put the pan in another pan either.  
One thing you might try, if you can, is to test your oven temperature with an 
oven thermometer.  This would require sighted help.  If your oven is too hot, 
it might be making the cake rise too fast.
Hope this helps some.
Blessings,
Alice
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