Baffle direction is largely irrelevant, but the small end of the cone should point aft to enable oil to get out more easily.

If the engine's running hot, then it's too lean, running too much propeller, or just doesn't have enough oil in the fuel. You should be using a fuel with no less than 18% oil content, and we'd strongly-suggest that you have a significant portion of the oil mix be castor oil. An all-synthetic blend would not be the best for breakin.

Here are some RPM ranges for various propellers:

13x6 12,500
13x8 10,400
13x10 9,500
14x6 10,900
14x8 9,500
14x10 8,400
15x6 10,200
15x8 8,100
16x6 8,300

Propping between 10,000 and 11,000 RPM would be a good range for most operations.