Hi there....after downloading the new plugin ...how should I handle this? what are the steps?
Just go to your WP-Admin>Plugins and it will be displaying an available update as it normally does. Click "Update now" as usual. No need to download it.
(I assume not to delete the current version as all orders/configurations will be lost...isnt it? )
It the case where you DO have to download it (rare) you assume wrong. All settings are safe and sound in the database. Nothing would be lost. You simply deactivate/delete the old plugin or theme then upload from Plugins>AddNew>Upload, then click "Activate".
In the case of themes, you must temporarily switch to another theme before deleting the old one and uploading a new one. Then switch back to the new one you just uploaded.
Actually, when you update a plugin or theme (any plugin/theme) normally from the WP-Admin>Plugins area, the entire plugin or theme is deleted in the background and the new one is downloaded and installed automatically in the background. And no settings are lost then either.