Thefluid you see in the master cyl under the cap is in the resorvoir. It will naturally have air above it. Just dont let the level get below the bottom or you will have to start over. Its a good idea to bench bleed a master cyl. but you have gone this far it is not nessesary now. Adjust them like the guys said & if you still dont get pressure to the rear wheels you have a blockage like they describe. I believe you are getting close.