Nearly there........ When you re-assemble make sure you tighten the steerer allen key on top first thus tensioning the headset, not too tight though or you risk knackeing the bearings or too loose that you can feel play in the headset when you apply the front brake or change direction.......... Then tighten the stem clamp usually 2 allen key bolts around the steerer tube.
I wouldn't make any cuts until you've been riding for quite a bit in the new position and you are totally happy with it. Also you may feel like a change in the future, but if you've cut the steerer, then you are buggered. I decided not to cut mine and have about half an inch above of spacer. It's not a problem IMHO. As suggested above I have flipped the stem over but so it it is angled downward rather than upwards which is a great improvement for me.
If you do cut the steerer use a plumber's pipe cutter. Do not use a hacksaw as you will not be able to get a clean precision cut and totally bugger up the top of the steerer tube. That's my 2ps worth.