Short version:
You have the basic steps correct - clutch in, blip & downshift, clutch out.
Long version:
It would probably help if you understood what happens IRL when downshifting. The basic principle lies with the gear ratios -- at the same vehicle speed, the engine will turn different RPMS in different gears. This means the engine RPMs have to change when shifting gears, assuming constant vehicle speed. Blipping the throttle just helps the shift between gears by revving the engine to be closer to matching the next lower gear's ratio at the same vehicle speed.
So maybe 3rd gear at 50kph is 3000 RPM. And 2nd gear at the same speed is 4000 RPM. And 1st gear at the same speed is 5000 RPM. So you can drive the car at 50kph in any of these gears, but the engine will spin different RPMs at the same vehicle speed because of the different gear ratios. Blipping during a downshift is raising the RPMs to match the next lower gear's ratio at the same vehicle speed.
Since RPMs drop during upshifts (when accelerating), blipping during a downshift is basically the opposite process -- RPMs rise during downshifts.
I just bought a Corvette with a 6-speed manual transmission IRL and it's really fun to drive the car in the meaty part of the powerband, with most of it's power immediately on tap.