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What is the order for putting on a tallis katan in the morning?

I heard that upon waking up, even before washing al netilas yadayim, you put on your tallis katan, then wash your hands, use the bathroom, wash hands again and then make an al netilas yadayim....and then a bracho on the tallis katan (this is all in order not to walk more than 4 amos without wearing tzizis). Is this correct? I was learning the Mishna berurah (8:2) that says that you should only make the bracho on a tallis katan BEFORE you are about to put it on, which would be much later until after using the bathroom. What should be done? - 1) put the tallis katan on before netilas yadayim or 2) after you've used the bathroom and washed your hands and are able to say the bracho do you then put it on?