A family of Microsoft word processing software products for creating web, email, and print documents.
Step 2 should not be needed at all. When you select 2 pages per sheet in step 3, Word automatically rotates and reduces the document. Try it to see if it works that way for you.
If the document doesn't come out correctly, then step 2 should work like this: Click the Properties button (to the right of the printer name dropdown). The dialog this button opens is different for each printer manufacturer, and sometimes for each model, so I can't tell you exactly where to look. There may not be anything labeled "Layout", but somewhere in that dialog you'll find option buttons or a dropdown for choosing Portrait or Landscape.