Too bad about the pictures.
You put your needle through the two stitches at once, wrap and pull through the working yarn, just like on a normal knit stitch.
Then, without doing anything else, reinsert the needle into the first stitch on the needle and knit it like normal and slide everything off.
So you do wrap the yarn for the k2tog and for the part where you knit the first stitch again. You should be coming away with two stitches on your needle when you're done.