Yes – the gluten in the flour does cause them to shrink up a bit when they hit the hot pan. As far as I know, there’s really nothing you can do about that. I have had other readers tell me that they’ve added more butter to the recipe, which might help. Fat interferes with gluten development so it’s possible you’ll get less shrinkage with a bit more butter. In terms of them being too dry – the dough should be slightly sticky. If it ever seems too dry, just add a few more drops of water until it’s soft and smooth and a bit tacky. If you’re using a stand mixer, the dough should clear the sides of the bowl but stick to the bottom a bit.