PW2 Please help me update my jailbroken PW2

Hello friends,
years ago I did a jailbreak on my PW2 with the help of this forum.

I thought it would be a good idea to update my device and jailbreak it again.

I did a lot of research here but I am very unsure how to proceed.

SN Prefix: 90D4 -> Kindle PW2
Current firmware: 5.4.2

Here is my plan. Please tell me if I am good to go:

1) Reset the device over menu
2) Download firmware factory_PW2_5.4.3.2_initial, check MD5 (3cbac0b4821cec03432b9ed382744f41), update the device via menu
3) Download and install kindle-jailbreak-1.16.N-r16552.tar.xz -> K5 JailBreak
5) The device is jailbroken again
4) Download official Amazon firmware customer_PW2_5.8.7.0.1_update to get on firmware 5.8.7.0.1
5) What to do with this update file? Install it via the menu like 2) or install KUAL + MrPI first and update the device via MrPI? No hotfix for PW2 needed so that the jailbreak can survice?
6) Check to turn off WiFi + creater folder update.bin.tmp.partial to keep OTA away
7) Install KUAL if not needed in 5) + install Koreader
8) Install dictionaries, but where to get them and where to put the files in?

As you can see I am a liitle bit overwhelmed, I don't know how I managed to do it before :-)

Any help much appreciated, thank you!