You don’t need a hotstart file to run a 1D/2D connected model. A hotstart file might save you time for future runs because the computations start quicker.
The description is a bit hard to follow.
“I have a fall of 10m or so fall from the 1D cross section to the outlet of the 2D area”
Do you mean to the Inlet of the 2D area? If the 1D is 10 meters higher than the 2D and the 2D water surface is only supposed to be 3m or less, then that doesn’t sound like it is going to work.