Yes that is essentially right - you have missed a few steps
Originally Posted by d00m
Make sure you backup your iPhone via the sync/backup function in iTunes, then browse to the folder that contains your backup and ZIP it up. Later on iTunes will erase the backup and you might want some of the files back.
You need to start TinyUmbrella, then click on start TSS server (and check that the TSS server started correctlty\)
It is pwned DFU mode (not regular DFU mode) you need to restore in.
If you get a 1013 or 1015 restore error use FixRecovery to exit from recovery mode. (The custom IPSW should prevent this error from appearing)