Your general approach is pretty spot on... to simplify it: clean, decontaminate, correct, protect. You hit all of those targets.
For your correction process, you have the right idea by starting with the medium polish and a medium pad to help get an idea if you found the sweet spot or if you need to be more or less aggressive to obtain the results you are after. I discuss this in my article
Analyzing Your Test Spot.
Keep in mind that if you can remove the defects without marring the finish, there is no real need to follow up with a fine polish.. we call this a one-step paint correction. If there is micro-marring present after you have removed the defects, then you will need to follow up with a medium or fine polish to restore clarity to the finish.
With CQuartz UK, I highly recommend you apply the product to a small area first (I usually start on the trunk lid) so that you can get a feel for the proper timing between start of application and start of removal. Use a stop watch! In my experiences, CQuartz UK is usually ready for removal by the time you are finished spreading it onto one smaller panel, or part of a larger panel. Don't get yourself stuck in a situation where you have coating drying on the panel and you cannot remove it quick enough. Work slow, take your time, and do it right! Also, if you can leave the car in the garage, I like to let the coating cure overnight before wiping it with Reload.
As far as cleaning you pads, you may be confused between "cleaning on the fly" and then a thorough cleaning when you are finished. Your pad will accumulate polish and paint residue after every section you polish, so it is important to regularly clean the face of the pad with a brush, towel, or compressed air to try to keep the pad as clean as possible while you are using it. Once the pad becomes too gunked up, it will not perform as expected (not as much cut, or a poor finish). This means you need to remove the pad, and begin using a new pad. When you are finished with the job, the pads should be thoroughly cleaned with pad cleaners or all-purpose cleaners, thoroughly rinsed, and allowed to dry completely.
Check out this article for more info:
Pad Cleaning During and After Polishing by Ivan Rajic
Let me know if you have any other questions!
-Zach