"This is a constant process reflecting upon the current situation, and upon the recent past of actions and plans. It is like an observer observing itself. This is the root of consciousness, I think."
Your description seems to fall under "the ability of a system to access its own internal states" and/or "the reportability of mental states" from the 'easy problems' section of the wiki pages I linked to.
Both could be possible without consciousness at all. We could imagine (or even program) a robot that in response to external stimuli modifies its state. It could also have second order algorithms, eg. it could check what state it's in and if it remains in the same state for too long, the state changes randomly. It would be the same as 'observer observing itself'.
This functional explanation in any way doesn't lead to the phenomena of consciousness, which would require the robot to have some specific first-hand 'experience' of the world and itself. That's the difference between the easy and the hard problem of consciousness.