I am using the below Registry Settings to download and install the patches/hotfixes if approved for installation. However, using these settings requires user interaction to get the install to start and download to computer, check the below settings:
Windows Registry Editor Version 5.00
[HKEY_LOCAL_MACHINE\Software\Policies\Microsoft\Windows\WindowsUpdate]
"WUServer"="http://192.168.1.1:8530"
"WUStatusServer"="http://192.168.1.1:8530"
"ElevateNonAdmins"=dword:00000001
"TargetGroupEnabled"=dword:00000001
"TargetGroup"="CPOD"
[HKEY_LOCAL_MACHINE\Software\Policies\Microsoft\Windows\WindowsUpdate\AU]
"AUOptions"=dword:00000004
"AutoInstallMinorUpdate"=dword:00000001
"DetectionFrequency"=dword:00000016
"DetectionFrequencyEnabled"=dword:00000001
"NoAutoRebootWithLoggedOnUsers"=dword:00000001
"NoAutoUpdate"=dword:00000000
"RebootRelaunchTimeout"=dword:000002d0
"RebootRelaunchTimeoutEnabled"=dword:00000001
"RebootWarningTimeout"=dword:0000001e
"RebootWarningTimeoutEnabled"=dword:00000001
"RescheduleWaitTime"=dword:0000001e
"RescheduleWaitTimeEnabled"=dword:00000001
"ScheduledInstallDay"=dword:00000000
"ScheduledInstallTime"=dword:0000000c
"UseWUServer"=dword:00000001
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