While the fight between Kayle's clone and the three genins was happening, Was looking with interest at it while making sure to pay attention to his surrounding to not get sneak attacked.
Kakashi: 'His Taijutsu is as good as ever... they couldn't even land a single hit on his clone... and he only used a ninjutsu that I taught him... he made sure to not give me more information than I already have.'
As the fight finished Kakashi left his spot, taking another hiding spot as he started tracking Kayle, he summoned his dogs to help him and started following them carefully.
Paku: "Follow me Kayle left is this way"
Kakashi: "Okay but be careful he know that I have you guys so he may have prepared something"
Kakashi and Paku followed Kayle's traces till they reached a vast expanse of water, looking there Kakashi finally found Kayle waiting for him on top of the water while smiling.
Kayle: "You really took your sweet time guys, long time no see Paku"
Paku: "It's been a long time Kayle, I miss the snacks you gave us from time to time... could you make some more for us in the future?"
Kayle: "Sure! but all the dogs are not allowed to help Kakashi during this fight"
Kakashi: "haha, nice try but "
Paku *Poofvanish into a cloud of smoke*
Kayle: "..."
Kakashi: "..."
Kayle: "You were saying?"
Kakashi: "I... I was saying that I wouldn't need their help to fight against you" *cough**cough*
Kakashi jumped on the water and started running towards Kayle, at the same moment Kayle sped up in the direction of Kakashi, they started exchanging fists, their level in taijutsu was very close but Kakashi had slightly the upper hand as his body was stronger than Kayle.
Kayle could reverse this gap by opening two gates out of the eight gates but he decided to try to find another solution first, he jumped backward and started doing hand seals as fast as possible.
Kayle: "Suiton! Water boots"
Kayle used the knowledge of his past life combined with the knowledge he gained about Jutsus and his imagination to create this technique.
The water under his feet changed form to create a pair of boots, Kayle's speed increased and he could now send jets of water from his feet allowing him to be propelled or attack.
Kayle taijutsu forme changed from close range to mid-range, using the advantage of the jets of water he projected with his feet.
Kakashi felt the advantage he had slowly disappearing, he started throwing shurikens to block any projectile of water coming his way. Feeling more and more pressured, Kakashi finally activated his Sharingan to be able to predict Kayle's moves and avoid his attacks more easily.
Kakashi: 'Damn... I never taught him this jutsu... I don't even think it's in Konoha as I never heard of it... I definitely need to copy it later'
Kakashi felt frustrated not using his Sharingan earlier, wanting to conserve his chakra he missed the opportunity to get his hand on Kayle's Jutsu which would have made this fight a lot easier. In reverse, Kayle was elated by his Jutsu, he felt more freedom while fighting as he could even double or triple jump using it.
Kayle: 'Perfect! it's working perfectly! too bad I couldn't find a way to fly yet... time to test its second form'
As Kayle landed and slid on the water after an exchange with Kakashi he gathered all his strength in his legs and jumped as high as he could, he then propelled himself three more times using his water boots and started doing hand seals once more while falling towards Kakashi with both his legs aiming at his opponent.
Seeing Kayle falling at high speed towards him Kakashi decided to not have a direct confrontation and to counter-attack the moment Kayle touched the water, he hopped slightly backward barely avoid Kale's Landing position.
Kakashi also started imitating Kayle's hand seals, as he used his Sharingan.
Kakashi: 'fool me once shame on you fool me twice shame on me, I will send your Jutsu right back at you teaching you why they call me the copy Ninja'
The moment Kayle's feet made contact with water, he knew his strategy had worked, the water boots Jutsu had a third use other than increasing his mobility and projecting water, by using a very high frequency of water projection under him, he could create a small zone with a radius of around three meters where the water was disturbed due to the vibrations, this move didn't create any huge wave or anything spectacular like this but it made it impossible for any Ninja to keep his stability on top of the water using Chakra.
Kakashi was extremely surprised as he felt himself sinking inside the water.
Kakashi: "What's happening? is this the Jutsu he is currently doing? No... it's can't be we didn't even finish the hand seals"
Kakashi also saw Kayle sinking at the same timing as him, he kept his focus and continued imitating Kayle.
Kayle: "Suiton"
Kakashi: "Suiton"
Kayle: " Water Prison!"
Kakashi: " Water Prison!"
A huge dome of water was created around both Kakashi and Kayle, this move was one that Kayle took from Kisame and modified it, the original Jutsu was Water Prison Shark Dance Technique, but as Kayle didn't have Kisame physique he changed part of the Jutsu as to conserve the dome prison while adding a feature that could help him breathe underwater.
Kayle: 'Thanks Itachi! I've advanced quite a bit in creating my domain thanks to you'
Both Kayle and Kakashi continued their fight under water, but now Kayle had a very clear advantage as his water boots were even more efficient in these conditions.
Kakashi: 'The Jutsu I copied help me breathe underwater... but It also maintains water around me at all times... I'm at a disadvantage like this... as long as I keep fighting inside of water my chance of winning are slim, but even If I deactivate the water prison I won't be able to get out of Kayle's dome as he is faster than me I will only suffocate if I do that'
Kakashi kept fighting trying differents Justus, in these conditions, he couldn't use any fire Jutsu strong enough to get him out, Raiton was out of the equation as it would hurt him even more than hurting Kayle if done inside of the water, and he didn't know any wind or earth Jutsu that could help him.
At some point, Kakashi decided that he really couldn't find any solutions and lifted his hands.
Kakashi: "I surrender"
Kayle smiled brightly as he finally released his Jutsu.
Kayle: "Look like I really fooled you twice, seems like copying a technique without knowing what it does is quite risky"
Kakashi nodded and felt very
Kakashi: 'Konoha is really the nest of geniuses... look like a new beast was born today not only is he strong but on top of it the way he fights is extremely smart and uncommon never had anyone used the fact that I copy ninjutsu against me...'
Kakashi: "I used so much of my chakra... and now the three idiots are unconscious even if we lost you better prepare fired chicken for us tonight or else I won't forgive you"
Kayle: "Okay! but don't report my current strength to the Hokage yet"
Kakashi: "I already told him about you being a genius several years ago but he didn't take it seriously... I will send him a report this time as well"
Kayle: "I hope he won't restrain my freedom... I still have so many places I want to visit!"
After their small discussion, both Kayle and Kakashi started heading home to take care of everyone.