We have Cisco WAAS deployed Our Enviornment.
We are using wccp gre as return & redirection method.
We are using the default egress method which is IP forwarding with of all our offsite routers.
Our smaller site Offsite routers are configured as LAN on stick / SVI terminated on the router.
While Large Site is configured with access/Distribution Layer architecture where SVI is terminated on L3 Switches/3750
& they have point to point routed connection to WAN Edge Router .
Can I still use the my default egress method for Ip forwarding?
See again some more detail is needed from point of redirection.
lets take example for your own setup, if all client vlan (SVI on l3 switch) traffic, going out via that WAN router needed to be redirected, then you can place the WAE on seperate VLAN on L3 and do redirection for all user LAN interfaces and interface connected towards WAN router. This is a simple setup and doing redirection on Switch will help as it will be done in H/w. In this case you can have IP forwarding as egress method.
But now take example that there multiple WAN links on the same router. And you want traffic going only to one particular site (via one of the WAN link only) to be optimized, then its good to do redirection on router. But for this WAE has to be a L2 neighbor to router (may via a fre router interface or router on stick). but if that is not possible and WAE has to remain at switch with HOP away from router then we have no other option but to GRE (both redirection and forwarding)