Personally I don't introduce water into the sanding equation until the top coat has gassed off for at least 14 days and I'm beginning the final cut & polish.Just keep going with the clear and intermittent wet sand with 1200 till your happy.
And as far as sanding between coats, only if I have to knock down dust nibs and I will only use dry paper or a synthetic sanding pad. If I have to fix a small sag or run, I will will give that at least a few days and then use dry paper to fix it. (or razor blade, then paper)
Everyone's got their way of doing things. This way is mine.