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I use Co2. There are a few ways to do it.
1. Up the pressure to 35lb and let that stay for 3 days, then bring it down to pouring presures
2. Set the regulator to pouring pressures and let it sit for a week. (This is what i do)
I have my regulator set for 10psi for everything. Some people tweak this for every beer, and so did I for a while. I have since settled on one setting and that is where it stays.
I have added priming sugar to a keg while racking. This works well, but it takes some patience. I always use DME, and use nearly twice what any calculator recommends. Usually 1/4-1/3 cup works well. Don't worry too much about over doing it; a corny keg is rated up to 130 psi, and won't blow up like a bottle will.
MaltLicker - Just DME to prime the keg. I do push out all the sanitizer with CO2 to purge the oxygen and minimize oxidation; but beyond that, I don't add any CO2 other than to serve the beer. Unless of course the beer is flat, which happens from time to time. I have never noticed any sort of krausen, except the one time I used a champagne yeast to carbonate a belgian tripel. It was minimal, and didn't affect the serving process too much. I poured about two pints of pure yeast when I first tapped the keg and the rest of it was beautiful.