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I'm installing some recessed lighting, the lights are IC and wet location rated if that helps.

The plates on the junction boxes attached to the cans say' Mamixum of 8 No. 12 AWG branch circuit conductors rated for at least 90 degrees C permitted in junction box, 4 in and 4 out'. In one box I have a line coming in (hot, neutral, and ground), and two going out (hot, neutral, ground each) in addition to the 4 16(?) gauge wires already attached to the can (two ground, one hot, one neutral).

My question is, does '8 conductors' include the ground wires and the can's already attached wires? And, how can I adjust for using 14 gauge instead of 12?

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This is called box fill. You only have to count 1 of the grounding wires in the box. NEC 314.16.B.5. With that information you gave: Only 7 counted wires. table 314.16.A has many examples of 12AWG wire with 8, all of them allow for 9 with 14AWG wire. that gives enough room for 1 more 14-2 with ground beyond what you needed.

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