I am very confused. After using the bathroom, I wash my hands with soap then dry them really well on one cloth towel separate and then still in the bathroom was with a washing cup 3 times and the dry my hands on a different towel and then exit and say Asher Yatzer. Is what I am doing correct or did I get it wrong and am just over doing myself?
From what you are writing it sounds like you are overdoing a bit. Here are the halachos.
If possible, it is better to wash your hands outside of the bathroom. If you can’t, then at least dry them outside the bathroom. There is no need for you to dry your hands between washing them with soap and washing them after that. In fact, according to the simple halacha, you don’t need to wash your hands with a cup or three times, as once is enough. According to this washing your hands with soap and water would be enough, as it is washing them once, however it is better to do it outside the bathroom. There are however those who are careful to wash their hands three times with a cup after using the bathroom, but even according to that there would not be any need to dry your hands after washing them with soap.
M:B 4-39, Aruch Hashulchan 4-21, Shulchan Aruch Horav O:CH 4-18, Minchas Yitzchok 4-36, Chelkas Yackov 2-162, Har Tzvi1-50, However see Ben Ish Chai Toldos 16 and Piskei Teshuvos 4-18.