Did I count up right?

[jim8flog]

Here's what I see:
1 - tee shot
2- shot played from PA, ball lost
3 - penalty stroke (stroke and distance), ball dropped at spot where stroke 2 played
4 - penalty stroke (penalty area relief), ball dropped outside penalty area
5 - shot towards green after penalty area relief

Got it now after reading up reading up Rule 17 as quoted by Backswoods man - my apologies

17.2b When Ball Played from Penalty Area Is Lost, Out of Bounds orUnplayable Outside Penalty AreaAfter playing a ball from a penalty area, a player may sometimes be required or choose to take stroke-and-distance relief because the original ball is either:• Out of bounds or lost outside the penalty area (see Rule 18.2), or• Unplayable outside the penalty area (see Rule 19.2a).

If the player takes stroke-and-distance relief by dropping a ball in the penalty area(see Rule 14.6) and then decides not to play the dropped ball from where it comesto rest:•
The player may take further relief outside the penalty area under Rule 17.1d(2) or(3) (for a red penalty area) or under Rule 17.2a(2).•

If the player does so, they get one more penalty stroke, for a total of two penalty strokes: one stroke for taking stroke-and-distance relief, and one stroke for taking relief outside the penalty area. The player may directly take such relief outside the penalty area without first dropping a ball in the penalty area, but still gets a total of two penalty strokes