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AFireInsideMe:
I first raised up the ground to be able to have foundation at a level of eight stairs up. I am not sure how many clicks exactly.
Once I had the foundation at the right level, I flattened the terrain. When you place the stairs, the ground should not sink, but remain flat. This way you know you have the correct height.
The basement part of the house is simply built under the foundation like a regular basement. I usually place paint with a border on the foundation walls and lower the terrain until I can see it is the right height.
The sunken section of the home is built on the ground level and connected to the main level of the house. I then connected the sunken level to the basement level. It should be an equal distance of stairs down to the basement as there are stairs up to the foundation.
The area under and to the side of the stairs will be sloped ground, so you will need to cover it with foundation to the side of the stairs, and flooring underneath.
I hope that made sense.