Cover the pellets with water and drain after 5 seconds.
Mix your ground bait as normal for the method.
When the groundbait has stood for a while and is the correct consistency mix some of the groundbait with some of the pellets, mix more as you need them during the day, this allows you to adjust the dampness of the individual items during the day.
What you are doing at the moment is using far to much water, and so the groundbait and the pellets become one wet mass. For the method the groundbait should be damp enough to make a ball but dry enough to crumble when rubbed between your hands. The pellets should be damp enough to stick together but not so wet that they are soft. If you put the pellets in the mould and then push the feeder into them the pellets should not squeeze out between the mould and the feeder, if they do they are to wet. Have a look on you tube for Des Shipp videos on the method.
Oh yeah, forgot to say, when adding water to already wetted pellets or groundbait only add a very small amount by wetting your hand and swirling it in the pellets, it is amazing how little water is needed to wet them down again.