You were doing fine until you got to the proof of continuity. For that you want the following calculation, where for $A\subseteq\Bbb N$ I set $\widehat A=\{\mathscr{U}\in\beta\Bbb N:A\in\mathscr{U}\}$.
$$\begin{align*}
\hat f^{-1}\left[\widehat B\right]&=\left\{\mathscr{U}\in\beta\Bbb N:B\in\hat f(\mathscr{U})\right\}\\
&=\left\{\mathscr{U}\in\beta\Bbb N:\exists U\in\mathscr{U}\Big(f[U]\subseteq B\Big)\right\}\\
&=\left\{\mathscr{U}\in\beta\Bbb N:\exists U\in\mathscr{U}\Big(U\subseteq f^{-1}[B]\Big)\right\}\\
&=\left\{\mathscr{U}\in\beta\Bbb N:f^{-1}[B]\in\mathscr{U}\right\}\\
&=\widehat{f^{-1}[B]}
\end{align*}$$
Suppose that $f:\Bbb N\to X$ is a sequence in some compact Hausdorff space $X$, and $\mathscr{U}\in\beta\Bbb N$. For each $U\in\mathscr{U}$ let $K_U=\operatorname{cl}_Xf[U]$, and let $\mathscr{K}=\{K_U:U\in\mathscr{U}\}$; clearly $\mathscr{K}$ is centred, so $\bigcap\mathscr{K}\ne\varnothing$. Let $x\in\bigcap\mathscr{K}$, and let $V$ be an open nbhd of $x$. Let $A=\{n\in\Bbb N:f(n)\in V\}$. If $A\notin\mathscr{U}$, let $U=\Bbb N\setminus A\in\mathscr{U}$; then $V\cap K_U=\varnothing$ a contradiction. Thus, $\{x\in\Bbb N:f(n)\in V\}\in\mathscr{U}$ for each open nbhd $V$ of $x$. Since $X$ is Hausdorff, this easily implies that $\bigcap\mathscr{K}=\{x\}$, and we write $x=\mathscr{U}\text{-}\lim f$.
What you’re doing is letting $\hat f(\mathscr{U})=\mathscr{U}\text{-}\lim f$ for each $f:\Bbb N\to\Bbb N$, taking $X$ to be $\beta\Bbb N$. This construction is one way to prove the general fact that every function $f:\Bbb N$ to a compact Hausdorff space extends to $\beta\Bbb N$. Of course if you know that the Čech-Stone compactification $\beta X$ has (and is characterized among compactifications by) the property that any continuous function from $X$ to a compact Hausdorff space extends to $\beta X$, then you don’t have to go through the explicit calculations. It sounds from your question, though, as if you’re also interested in the nuts and bolts of $\beta\Bbb N$.
Added: What would be a good introduction to $\beta\Bbb N$ depends a lot on your interests. Are you interested in it from a primarily set-theoretic point of view, with particular interest in different types of ultrafilters, or is your interest more topological, so that you’re interested in Čech-Stone compactifications generally? For the latter there’s always the classic Rings of Continuous Functions, by Gillman & Jerison; it’s dated, but there’s still a lot of good basic material there. A little less dated is The Theory of Ultrafilters, by Comfort & Negrepontis. Jan van Mill’s chapter, An introduction to $\beta\omega$, in the Handbook of Set-Theoretic Topology, ed. K. Kunen & J.E. Vaughan, requires a bit of background but is well worth reading once you have the background. My library is a bit old now, and there may well be some good treatments that are more recent than any with which I’m familiar.