I started with NB kits last year. From what I've gleaned from experience and the forum, I would:
1. Bring your water to 170 degrees, turn off heat, pour steeping grains into muslin bag, and put the grains in water. Dunk up and down a few times to make sure all the grains get wet. Remove after 20 minutes, and bring water up to a boil.
2. While water's coming up to a boil, empty out the grain bag and cut in half length-wise to use as hop bags later.
3. When water boils, remove from heat and stir in 1/4th or so of the malt extract. Tie knots as necessary and dump the 60 minute hops into one of the grain bag halves. Bring water back to boil and add the hop bag, dunking it every so often.
4. Do the hop-bag thing with the second hop addition.
5. After 60 minutes, turn off the heat (flame-out) and stir in the remainder of the malt extract.
6. Follow instruction up to Step 16. Ignore Steps 16, 17, and 18.
7. Four weeks later, follow instructions to bottle beer.
8. Let beer condition 2~3 weeks, refrigerate for 1 week. ENJOY!