No the test data can't be included in the training data, or else it would be
like giving a student the answers to the exam before-hand.

You're doing much less work for other reasons. Recommendation is a bigger
problem. It may require computing many estimated preferences to get one set
of recommendations. Evaluation is just computing a single item preference
each time.

There is also an additional parameter "evaluation percentage" -- are you
setting this to less than 1? That simply throws out some percentage of all
data entirely. This is a way to make the evaluation quicker (and less
accurate) by simply shrinking the problem.

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