Adding MS Patches only from local hard disk? Only files or application included?

Sorry for these newbie questions. I am currently starting to evaluate Win Toolkit.

I want to create a Win 7 Pro ISO WITH ALL Patches already applied.

Therefore I started Wintoolkit process and selected one of the public available Win 7 ISOs.

At some stage I get to the All-in-One Integrator.

When I go now to the tab

Basic--->Updates+ Languages

then it seems to me that I have to add all currently available Patches manually.

Furthermore all these patches (= *.cab files) must be already downloaded and stored on the local hard disk.

Is this really true?

I could imagine that there is a menu/option "search for all available patches, download and add them" which allows users to perform all this with one click.

Where is it function?

Or is manual adding of the pre-downloaded patch files the only way?

Furthermore I wonder whether the patch files are simply added as files somewhere to a sub folder to the iso or if they are already slipstreaming into the Windows 7 installation.

In other words: Assume I later install a Win 7 system from such an WTK ISO: Do I have to apply all the patches afterwards in a second step or are they instantly available just after first boot of new system?

Thank you

Peter