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What you are doing here is equivalent to bench-bleeding a brake master cylinder. Between steps 9 and 10 it would be a good idea to suction out all the old bubbly fluid in the reservoir and replace it with fresh, otherwise it sounds like it should work nicely.

If I remember correctly, the official procedure for bleeding the clutch hydraulics on a Mercedes is considerably more involved. You are supposed to connect the bleeder screws of the clutch slave and the left front caliper with a jumper hose, open both bleeders, and pump the brake pedal to force fresh fluid through in the reverse direction. If you try this, watch the level in the clutch reservoir, as it will rise, and you don't want to overflow it, especially with a newly painted engine compartment. My concern with this method is that it is difficult to get a good seal on the jumper hose, and even if you do, it is still possible for air to get in through the threads of the bleeder screws. When I did mine, (78 240D) I used a combination of gravity bleeding and pedal pumping, and eventually got it to work satisfactorily.