I used the Hughey gauge for years with a lot of success, mine didn't come with instructions either!
The first thing you have to do is measure the depth of the little step gauges and mark them.
You should figure a station (position) on the prop you want to measure at and probably stick with that number for all your props. I use 75% or 3/4 out on the blade from the centre of the hub. Now you have to position the little pointer that touches the blade to that position, so....
Measure the diameter of the prop with a set of verniers (I use mm), divide it in half and multiply by 0.75. Measure the diameter of the prop shaft on the unit (3/16 I believe) and the pointer, add the two and divide in half. Now add those two numbers and that will give you a mesurement for the outside of the two shafts. Set your verniers to that number and move the pointer until the two just fit your vernier mesurement.
Now to measure the pitch (at 75%). Put the prop on the shaft and tighten the nut. Position the pointer as close to the TE of the prop as possible, move the prop to position the degree pointer at zero. I first measure the average pitch from TE to LE so move the pointer along the prop to the LE and using the step gauges put the biggest one you can in the space between the base and the bottom of the prop. Let the prop rest on this gauge and note the number of degrees the prop has moved to go this distance.
You should have charts that give inches of pitch for each step gauge and certain degrees. If you don't have the chart it's not too hard to calculate it.
As mentioned I first measure the average pitch LE to TE then I measure cup as the last 15 degrees of the blade (I use an ART gauge that sets the degrees and measures the distance with a dial gauge). You could use one of your smaller step gauges to mesure the last little part of the blade where you can have some big pitch.
You've definately got the right idea working with a pitch gauge, many props are nowhere near what they're supposed to be and often the blades are not equal.
You can make all the horsepower in the world but if you can't get it to the track you'll smoke the tires every time...