Your first 2 steps are right -
Row 1 - bind off 2
Row 2 - bind off 2
Row 3 - dec at beg and end of row, do 3 rows with no decs and dec on the 4th row, which is row 7. Work another 3 rows, and dec on the 4th row, row 11. That's if you're doing the 4th size - [COLOR=Black]dec 1 (0-1-2-3) time(s)[/COLOR]. Then you switch to every other row until you have the right number of sts.
If you're doing a different size, you might also dec on row 15 or none at all after row 7. Then do the decs every RS row (same as every other one).
eta and clarify - I see salmonmac has a different numbering scheme than I do. It depends on whether you consider "dec on 3rd row" to actually be Row 3, or the 3rd row after the 2 BO rows, which would be Row 5. I figured it as row 3, she figures it as the 3rd row after binding off. Usually though, most patterns begin the decs on the next row after the BO which would be row 3.