Haasman covered it quite thoroughly. One additional step for a better fluid flush would be to remove the old fluid from the master cylinder reservoir and add fresh new fluid before bleeding the brakes. This bleeds the brakes faster with less mixing of old fluid with new.
Ditto on cleaning the caliper, especially where the pad is installed. A lot of grit accumulates in these grooves that can preclude good seating of the new pads. The packed-in grit needs to be removed - preferable with a wire brush - or you may not be able to fit the caliper back over the rotor. MB brakes are a tighter fit than most other cars.
95 E320 Cabriolet, 131K