My recommendation is to use the kaowool 2" blanket, with some refractory cement "painted" onto it, followed by a coat of the ITC-100. This is how the majority of blade smiths build their forges, and many of them reach temperatures hot enough to forge weld. This will also protect the inside of the steel barrel. Based on what I've seen of the images, there must be a gap between the burn chamber and the outter barrel, so size the chamber accordingly. I am only making an educated guess, since I've not built an RSMH, yet, that the heat will be transferred better to the "seat" since it is not being lost through the chamber shell. I would recommend testing this, before installing it, since I'm a novice to the rocket stove concept.
On a side note, has anyone investigated encasing thermoelectric couplings when the mass section is built? I haven't gone too deep into this, yet, but it would seem to be an effective way of using the heat for the secondary purpose of generating electricity, as well. I am going to do some more research, on this subject, so I may start a thread outlining the concept. It will be at least two years, before I get a chance to try these theories, myself.