If you remove step one (the evil desire), there is no free will. If you remove step three (the ability to actualize one's choice), the whole system (and creation) becomes pointless.
So then we don't have free will? It's often the case that we don't have these things.
Here's an example:
The last time I was driving, it never even occurred to me that I could use my car to kill people. I never once thought to myself, "no, I shouldn't steer into the people on the sidewalk" because I never even thought to ask myself if this is something I should do.
And if I had decided to kill pedestrians with my car, it's entirely possible that they could have avoided me. Maybe some fixed object I failed to notice would have stopped the car before I could hit anyone. Or maybe I could have decided "okay - I'm going to run a pedestrian down," but I make the decision so late at night that there aren't any pedestrians out.
Does the fact that I don't think of every evil idea mean I don't have free will? As it is, uncountably many evil things that I
could do never even cross my mind... and you seem to be saying that if evil things don't occur to us, then we don't have free will.
All else being equal, a lot of evil doesn't happen because it simply doesn't occur to us, or because the circumstances aren't favourable to it happening even if someone chose to do it (or because it's just physically impossible). All of this represents potential evil that has been prevented.
What I'm saying is that if even more evil just never occurred to us, or if circumstances were less favourable to evil acts more of the time, then less evil would be inflicted on the world. And since both of these things are just incremental changes to what we already have, I fail to see how we could have free will with the status quo but lose it in a slightly altered version of the status quo.