Both work equally well as far as burning fat. I assume your No. 1 goal is to burn fat, so it doesn't matter if the hill is steep or moderately steep. What matters is running your FASTEST up whatever incline there is. Because if you literally run your absolute, maddest fastest sprint possible, this all-out interval will be over within 15 seconds.
So if you're blasting up a medium hill your fastest, you should be spent within 15 seconds, because if you sprint your hardest on a level surface, you'll be out within 15 seconds. This is why 100 meter racers cannot maintain their top speed much longer than 100 meters, and top sprinters finish this distance in under 11 seconds.
If you choose a steep hill, and "sprint" your fastest (it won't technically be a sprint, due to the steepness), you'll be toast within 15 seconds. If you're running for longer than 15 seconds, give or take, you're not running your fastest, though it may seem you are.
On the other hand, a very steep hill may cause you balance problems, especially if it's lumpy and full of high grass, so you may end up stumbling here and there, and this slows you down, enabling you to go for up to 30 seconds before losing gas.
Bottom line: Make this workout HIIT: high intensity interval training. Sprint your fastest on any grade incline. As long as you reach your maximum limit in under 30 seconds, this is true HIIT, which means optimal fat burning and great cardio fitness improvements.
A super HIIT workout that will burn a lot of fat is to do 6 to 8 hill sprints (same steepness or varying grades) with a few or 3 or 4 min. of slow walking in between. This will kick your a$$ !
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