When you will click the uppdate button, another window will open up giving you the option of update from the folder or the internet. Now select the option of the folder and guide it to that specific one where you have down loaded the updates. But, I don't understand why you are resorting to this when you have an internet connection and can safely update directly from the internet, which is faster too. In case you are getting the update files from some other source other than your computer then it will make sense to keep all these update files backed up till the time you have your own internet connection. It will save you the trouble of re-downloading them again and again.