In writing a recipe, when should I remove the bay leaves in the process?
I would put the bay leaves in right at the beginning (with the water, dressing, and mustard) and remove them right before you temper the eggs since you don't want to accidentally grab a bay leaf and whisk it into the eggs when tempering.

Also, just a tip for recipes, list the ingredients in the order you use them in the recipes (that means put the mustard amount right up after the amount of Italian dressing, for instance).