Every "step" of the waterfall needs to be created with rocks. You are literally carving the hillside to create spots to place rocks - there won't be anything to collapse, if that makes sense.t's going to be difficult making a pooling area flat in this case, since the slope is so steep I'd be afraid the dirt preceding the area would collapse
And you control the "outflow" of each pooling area by how big of an outlet you create. You can have a wide flat waterfall or a pinched off waterfall or several waterfalls, all coming out of one pool. You're the master of how that water flows. The pools should be built so they are literally holding water back until they are full enough to spill over to the next waterfall.
I'm not great at explaining things verbally, but just imagine how nature would carve that waterfall with water - pushing rocks ahead of the water, switching directions as it meets obstacles. There would literally NEVER be a case where the middle of the pool is higher than the edges. You might find that a rock placed in a pool will create interesting water flow, but that comes in the actual build process.