Okay, this time I was able to get to the very last step.
After uploading the Update_jailbreak_bridge_1.14.N_install.bin file, the button Update your Kindle is grayed out - cannot press it.
After searching through the threads - I'm supposed to install mkk and kual afterwards. then place the hotfix in a certain folder?
I have no idea which file (from mkk zip) to copy to my PW2 4GB Kindle.