Thanks very much! 

A few more points for clarification:

1- Could you please give me a clue regarding what criteria to use for choosing Courant Number (for variable time steps)?

2- The only issue with explicit is that I can only use '1st Order' for the "Transient Formulation", while with the implicit method, I can choose a 2nd order. Is it okay?

3- For pressure, momentum, and volume fraction, is there a particular method that you can recommend for this specific problem (for instance, between 2nd order, QUICK, and 3rd order MUSCL) or for different methods available for volume fraction (i.e. Geo-Reconstruct, CICSAM, Compressive, and HRIC).

4- Should I use Coupled Level Set + VOF (CLSVOF method) here?

5- I've attached detailed pics of my setup below. I'd appreciate if you have a look and let me know if you think anything else needs a modification too (I understand that there might be no definite answer for some of them, I can try two better options and choose the best one based on the results). I just wanna make sure nothing is wrong before I run this simulation several times and get results.

Thanks for responding to the posts regularly and in detail as they become a great resource for the future users.