[Clocks]

Your natural reaction to the instruments without any knowledge of an engine failure will be right if you let it happen (and by "right" I mean you wont lose control of the airplane).

The airplane starts rolling as indicated by the AI and TC, you keep it level with the ailerons.

The airplane starts yawing as indicated by the HI and ball, you put in a little bit of rudder to stop it.

The nose drops, you pull up slightly to keep it level.

You can do all of that without any aural indications or looking at the engine instruments, and you've naturally put yourself in straight and level side-slip condition. Now put in the 2-5* bank, the appropriate rudder pressure and pitch for blue line, and you're in a zero side slip happily chugging along in the clouds.