Shumway states the student is flying accurately, so I wouldn't try and change
anything in the Attitude/Instruments part.
Why be mean to the student by insisting they have to do something in a
certain way (which is difficult for them) in order to achieve something
they are already doing.
The only reason for breaking something down in to parts is to be able
to teach it to someone who cannot do it.
I would, however, want to confirm that the Lookout isn't just looking
straight ahead to see the position of the horizon but is a good scan
to the front and sides of the aircraft - level, below and above.