Good stuff Oldman.
Have you considered applying the same techniques to the outside of the attacks instead of the inside?
In order to develop the kata applications to sparring all you need do is build a structured programme of drills.
Starting with the formal 1-step that you demonstrated, move on to informal continuous, a bit like the slow role, but working up to full speed and power, with uke trying to resist as best they can from the moment the technique is thrown.
The next thing is working with the variations the attacker throws so adjusting height or arc/angle of attack,
then work on flowing from one application to the next, so if after you block a straight punch he throws a hook, you flow straight into the hook defence from your kata.
Then drill the application by your attacker leading in with a combination and you have to find the point in the combination to apply the defence.
All of these should be done with as close to full speed and power as is possible emphasis on resisting the counters, gradually relaxing restrictions until you are free sparring. To further assist, look at each kata movement including the small parts of the movement and how these can be applied other attacks than the standard that you've visualised, and regularly work drills to practice these variations.
Train exclusively like this for a few months and you will be able to apply your kata to free sparring. A few years and you won't need anything other than your kata, or so Bill Burgar believes.
It's Shotokan not Shoto-can't!!!