Installing natural stone steps

I have two sections of my yard...an upper section and a lower section. At the transition point there are steps leading from the upper portion down to the lower portion of the yard. The issue is that the first step is about 3 1/2 feet below the upper level making it tough to get up and down. Additionally I only have about 5ft on either side of the soon to be installed steps before I hit my neighbors property. To make matters more difficult, beyond that first step the yard continues to slope down approximately 5 ft in depth and approx 10 ft in length to the point I plan on building a patio with a fire pit. I'd like to add fill and install large natural stones leading to the soon to be installed fire pit however...I am not sure on how to get started. I can't find any resources for adding fill for such a project. I assume the fill should be compacted as I add it but how often and after how much fill has been laid down and how do you compact it in preparation for the steps? DO I do it in a step pattern or just compact the entire slope and then dig out the soil in the places I want the steps? Is it ok to use large stones to fill the void and cover it with soil and if so...how do you compact the soil over large rocks? Finally..given the limited space I have on either side of the steps...can someone suggest how I treat this area to hold it in place and prevent erosion?

 

Photos of the area in question would enable the experts here to give better advice.

 

Usually I can visualize what is being described but this one has me scratching my head.

Picture would be very helpful!

 

Please Provide photos of the place where you want to install Natural Stone. There are many different options when thinking of building yourself a beautiful set of stone steps. If you provide proper information then I think experts here can give you better advice.