That seems like a reasonable plan. Malawi need to be "overstocked" to reduce aggression, but the pH should be very high compared to the fish that had been in the tank previously... You might want to consider adding some rocks and coral sand to raise the pH and kH. Also adding some rock work will also give cover to fish that wish to get out of the fray, etc. They will need to have some hiding places to retreat to at times.
Keeping the water isn't necessary, because the vast majority of bacteria are in the filter.
Adding them all at once is generally best, so that none of them have an established territory. They will each find their niche in the tank.