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I think your workflow should can be easily completed using Quick Edit or ACR. This is the series of steps I would recommend for you:
- Open up your document in Quick Edit mode of PSE
- Resize your image as per the required size using Image> Resize> Image Resize For more help on resizing the image and their print sizes follow the help doc http://helpx.adobe.com/photoshop-elements/using/resizing.html#main-pars_heading_0
- Use the adjustments providede in PSE under levels to work your way with shadows, midtones and highlights
thanks, will give it a try and let you know.