Yes, you can do all that with the engine in the frame. Additionally, you don't need the pistons in the all the way down location. It will probably be easier to remove the cylinder with the piston at the top of its stroke. That way you don't have to keep the flywheels from turning while disassembling.
Little hint. Get some new 1/2" rubber oil line and and cut it into 8 3"-4" long pieces and then split the pieces the long way with a razor. As soon as the cylinder is removed, put the pieces over the cylinder studs. This will prevent damaging the new pistons and rings after you install them on the rods. Leave them in place until you have the new cylinders lowered on to the pistons and the ring compressor removed. Then just before lowering the cylinder you can remove then from the stud, that is what the slice down the side is for.
Little hint. Get some new 1/2" rubber oil line and and cut it into 8 3"-4" long pieces and then split the pieces the long way with a razor. As soon as the cylinder is removed, put the pieces over the cylinder studs. This will prevent damaging the new pistons and rings after you install them on the rods. Leave them in place until you have the new cylinders lowered on to the pistons and the ring compressor removed. Then just before lowering the cylinder you can remove then from the stud, that is what the slice down the side is for.