I would recommend learning about what is involved in this step, before moving on to step 2.
https://acoup.blog/2020/09/18/collections-iron-how-did-they-...
This process is incredibly difficult, made moreso by the lack of easily accessible surface ore/coal. Also, keep in mind that when agricultural productivity is in the pits (Due to a lack of tooling, chemical feedstock, massive infrasturcture projects), and when you don't have the ability to make synthetic clothing (Which leads you to working with natural fibers, which is an incredibly labour-intensive process[1]), you aren't going to have the spare calories, or the hours in your day to 'just bootstrap a smithy'.
[1] https://acoup.blog/2021/03/05/collections-clothing-how-did-t...
But it's better to start with a magnet and stick to easy-to-debug stuff that can be eyeballed start to finish.
2. Make incrementally better tools. You don't need to get to the level of medieval clockmakers, just as long as you're not hitting metal with a rock.
3. Make a draw plate.
4. Make lots and lots of copper wire.
5. Build a water wheel whichever way you want.
6. Attach bigger wheel (TM) and connect to smaller wheel (TM) with a rope drive.
7. Use copper wire to build a power generator attached to smaller wheel (TM).
Unless humanity got completely wiped off the planet with no artifacts left behind, most of the above should not be necessary though.