Mini Can light Clearance

I am reworking our main bath and above the shower I plan to drop the ceiling about 7 or 8 inches using T&G Western Cedar as the ceiling. I am installing two mini can lights made for showers in the cedar ceiling. I am not removing the ceiling that is already there because of the blown in insulation. These can lights are 5 inches tall and are remodel type, there will be about 2 or 3 inches clearance above the lights will this be enough clearance to keep the lights from over heating?

The instructions show side clearance but not over head clearance. Do any of you guys know if the lights will over heat that close.

Another question, I almost know the answer to this one already. I plan to run copper water supply pipes, for shower heads, in the dropped ceiling also as one will be for an over head shower head, will this pass code or will I need to run the pipes under the floor. The lights will be on a ground fault circuit.

Please don't suggest asking our county code department, I have dealt with asking them before, what a joke. I had to call back and talk to my inspector at 3 PM when he came in to do his paper work and he was not happy to answer questions.