Can't help on the steps, but a helpful tip that I am following myself:
Write the dialogue as if you were having a one-on-one conversation with the person in question. How would expect them to react to a certain action? Are they kind and patient or a hot-tempered and hasty?
Think about that, and you;ll begin to make realistic dialogue. Good luck!
All of my mods are available on Deadlystream
Always remember modders: "Quality= Effort*Time"
KSE 3.3.4 is LIVE!!! Check it out here.
12/13/13 -- Fixed KSE 3.3.4 bugs. Please check the above link.