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EEE is a pre-finish. No matter what finish I use, I always use this first. If I sand to, say, 600 grit then using this will give me the equivalent of... oh, I dunno... working down to about 1200 grit?
Just a bit applied to a rag and applied like a friction finish after sanding. Then, using a clean rag, all traces of it must be removed before applying the finish. Just keep polishing on the lathe until no more "colour" comes off.
As Skew said, EEE is an extension of the sanding process but it actually breaks down to about 12-15,000 grit the more you work it BUT you must go to at least 400# before you use it.