How do I update my jailbroken iPhone?

This is my first iPhone, and first time attempting to update the firmware, so I don't know the proper way to do it. I have an iPhone 5 with iOS 6.1.4 jailbroken. I want to update to 7.0.4 and jailbreak with evasi0n7. What is the proper way to do the update? I want to keep all the information I currently have on my iPhone, including apps downloaded from apple's app store (and those apps' settings), pictures/videos in camera roll and albums I created with pictures/videos uploaded from computer.

Also, what about cydia tweaks/apps? Not sure I'd even want to automatically transfer them all because of iOS 7 compatibility issues?

Note: I have read that OTA updates will screw with the evasi0n7 JB. Currently my phone DOES have iOS7 downloaded (against my will, and taking up space) but NOT installed. Want to make sure that after this whole process, I get that storage space back. Would appreciate any help. Want to do this asap. Thanks.

Answers