Couldn't have explained it better. Just one thing, be sure to completely wash and clean everything when you change each sandpaper grit. You don't want to have some of the old grit (or metal filings) getting mixed in/on the finer grit paper cause it will scratch into the heatsink deeper then the rest of the grit and can screw things up for getting a fine, mirror like surface.
And I mean wash everything, your hands, the heat sink, the surface you are sanding on (recommend using glass table or other flat surface), and the bucket of soapy water you used. Also recommend periodically cleaning off the sand paper you are using every few minutes or so to wash away most of the metal filings. It helps to keep the sanding process going faster as the paper does not get clogged up and thus get poor contact to the heatsink.