uguv :
The i5-4460 would beat the i3-6100 in some games and lose in others. It would be a decent choice. The FX-8350 is worse than the i3-6100 in pretty much every game.
The GTX 1060 3GB or 6GB is way better than either of the video cards you have listed.
You don't need an expensive water cooling setup if you go with one of the intel options.
finally, the PSU is low quality. Check the psu tier list on tom's to find a better one.
Just because of the GPU alone, the build you listed would be much worse for gaming than the one I suggested.
MADE A NEW BUILD FOR MY BUDGET
I AGREE FX-8350 is much worse.
New build as follows
CPU->Intel i5 6600k
MOBO->Gigabyte GA-H110M S2
RAM->Corsair Vengeance 8gb
HDD->Western Digital Blue 1Tb
POWER SUPPLY->Corsair VS550
CABINET->Circle Epic Gaming(Has 3 fans for cooling inbuilt)
GPU->Gtx 1060 3gb
I hope this would do...one of my friends suggested it and it had a pretty decent FPS on gsmes like Witcher 3,GTA V,AC Unity
Also I think the cpu fans will do the work for cooling
Also I go with your suggestion for 3 gb Gtx 1060.
Plus I need to ask will this processor stand out?
Also for how many years will this system last in terms of gaming?