The result to be proved is the following:
Let $R$ be a local Noetherian ring. Then the minimum number of generators of the unique maximal ideal $P$ equals the dimension of $P/P^2$ as a vector space over $R/P$.
Proof:
$P$ is generated by $x_1, ... , x_n$ $\iff$ $P/P^2$ is generated by $\overline{x_1}, ... , \overline{x_n}$, where a bar indicates the image of an element in the quotient $P/P^2$.
($\implies$) Clear.
($\impliedby$) Suppose $\overline{x_1}, ... , \overline{x_n}$ generate $P/P^2$. Consider $I=(x_1, ... , x_n) \leq P$ . Then $I + P^2 =P$.
$\mathbf{Hence}$, $\mathbf{P(P/I)=P/I}$.
Then Nakayama implies $P/I=0$ and we're done.
My question: I am completely stuck on the part in bold. I will appreciate explicit/trivial answers most. Thank you!
Let $M$ be a (left) module and $L$ a submodule of $M$. Let $I$ be a (left) ideal of $R$ (no assumption on the ring). Then $IM$ is a submodule of $M$ and $$ I(M/L)=(IM+L)/L $$ Proof. The submodule $I(M/L)$ of $M/L$ is generated by the elements of the form $r(x+L)$ for $r\in I$ and $x\in M$. Such an element is in $(IM+L)/L$. Conversely, an element of $(IM+L)/L$ is of the form $$ \sum_{k=1}^n ((r_kx_k+l_k)+L)=\sum_{k=1}^n (r_kx_k+L)\in I(M/L).\tag*{QED} $$
Thus, if you have proved that $P^2+I=P$, you have $$ P(P/I)=(P^2+I)/I=P/I. $$