The Public-Key verification was intended as an additional sanity check and I considered it not secure enough to just rely on it alone - so I added the PAKE step

The Public-Key verification was intended as an additional sanity check and I considered it not secure enough to just rely on it alone - so I added the PAKE step as well. As lotharrr mentioned other flaws, you may want to check out his suggestion which seems like the way to go for me. This to eliminates this "sanity check" step all together.