Using putty to patch to cloze module
After your step 1, make sure to initialize the GIT repository, which will add the .git directory, subdirectories and files that store your repository data.

To do so, just use command git init while in your directory sites/all/modules/contrib/cloze.

If you're new to using GIT with Drupal, you may want to look at the community documentation located at Building a Drupal site with Git (+ its child pages).