Your EDIT is the right track. What you described all falls under the category of Ear Training. Or better you would say: Brain Training. Because the whole purpose is to write down what you already have heard (or imagined) and maybe even can sing or play.
As always: You have to train and you have to practice. And start simple. Better too simple than too hard. If it's too easy you can always advance quicker.
My advice is to use real notation instead of words. If you are "a complete Newbie" it doesn't matter anyway and there is no better method to write down music than our notation system.
A starters advice: Use a limited set of notes. The goal is to just get the "dots on the line", or different words on paper, if you want. No confusion between C and C#.
A seven note scale (like Major, Dorian etc.) and you want to learn on what position the note is that you have in mind right now. Is it the first position (the C itself), the third?, the seventh? The software can help you here, but writing it down directly is even the better and faster route.
If hearing positions in a scale with 7 notes is too much, start with less. Just use a triad (c, e, g), always from the same absolute basis, and try to 'hear' one of these three with your inner ear, or sing it out loud. Then write it down.
If you lose motivation by just writing down what you might hear or not here is a second approach:
Copy music by hand. This works wonders. Take the notation form of a piece you already know, from listening to it, and then copy it by hand, note by note. Just one voice/line. Try to hear with your inner ear what you are writing down at the moment. As mentioned earlier: Take very simple lines at first. Children's songs for example.
As you might have noticed this is the opposite way from what you seek to learn: Writing down what you see and then hearing it instead of hearing it and then write it down. You brain does not care. The two tasks are connected and you learn important aspects from both methods.
Instead of earmaster you could use the free and open source http://www.solfege.org/ instead. I did a review and comparison for the University of Cologne (Germany) once and Solfege is actually equally good for the beginner level, eventhoug the GUI does not look like that, and superior for the advanced pupil.