The mind
What do you mean by the mind? Your response implies that the mind is not of the material world – how do you know such a thing exists?
My understanding of K is that when the brain is in order, when it is quiet and not burdened by sorrow, it may touch something sacred. My interest is only in bringing about order in myself. Based on what K was saying, this does not require appealing to anything metaphysical, but it demands questioning everything pertaining to the psychological (“be a light to oneself”).
Observation
The observation as you described can only take place after having the insight that there is no observer. How can I attempt such observation if I am caught in the illusion of the observer?
Insight
Simple because it cannot be constructed means insight doesn’t have prior causes. For example, I am stuck with a problem, and so I gave up trying to solve the problem. Hours may go by, or sometimes several days, then suddenly I have the solution to the problem. I may not know how my brain was able to connect all the pieces and arrive at the solution, but that doesn’t mean my insight into the problem doesn’t have a prior cause. The brain is a material structure bounded by the laws of physics.
My perspective is that only after the insight that there is no observer can the movement of thought be understood.