[guided]**Defining $\tilde{c}$.** The collapsed 2-colouring $\tilde{c}$ identifies all of colours $2, \ldots, k$ as a single meta-colour $\ast$, leaving colour $1$ untouched:
\begin{align*}
\tilde{c}(e) &= \begin{cases} 1 & c(e) = 1 \\ \ast & c(e) \in \{2, \ldots, k\} \end{cases}.
\end{align*}
This is a well-defined map to a 2-element set $\{1, \ast\}$, and renaming $1 \mapsto \text{red}$, $\ast \mapsto \text{blue}$ shows it is a 2-edge-colouring.
**Applying the two-colour Ramsey theorem.** By choice $N = R(s_1, M)$, the two-colour Ramsey theorem guarantees either a red $K_{s_1}$ or a blue $K_M$ under $\tilde{c}$. Here we verify its hypotheses: the theorem requires both parameters $\geq 2$; we have $s_1 \geq 2$ by assumption and $M = R_{k-1}(s_2, \ldots, s_k) \geq 2$ because $R_{k-1}(s_2, \ldots, s_k)$ is always at least $s_2 \geq 2$ (any monochromatic-in-$2$ $K_{s_2}$ requires at least $s_2$ vertices).
**Unpacking each subcase.**
*Subcase 1 — red $K_{s_1}$ in $\tilde{c}$.* The $\tilde{c}$-colour $1$ is defined precisely as the $c$-colour $1$: $\tilde{c}(e) = 1 \iff c(e) = 1$. So a $\tilde{c}$-monochromatic-$1$ clique is literally a $c$-monochromatic-$1$ clique. This gives a $K_{s_1}$ of $c$-colour $1$ — a finished instance of the theorem.
*Subcase 2 — blue $K_M$ in $\tilde{c}$ on vertex set $U$.* Every edge of $K_N[U]$ is $\tilde{c}$-coloured $\ast$, hence $c$-coloured in $\{2, \ldots, k\}$. So $c$ restricted to $K_N[U] \cong K_M$ is a $(k-1)$-colouring using exactly the colours $\{2, \ldots, k\}$. Since $|U| = M = R_{k-1}(s_2, \ldots, s_k)$, the inductive hypothesis for $k - 1$ colours (with parameters $s_2, \ldots, s_k$) guarantees a monochromatic $K_{s_i}$ in some colour $i \in \{2, \ldots, k\}$. This clique, viewed inside $K_N$, is still monochromatic in the original colour $i$, and $i \geq 2$.
**Why the induction closes.** In each subcase we have produced a monochromatic $K_{s_i}$ in some colour $i \in \{1, 2, \ldots, k\}$. Hence $R_k(s_1, \ldots, s_k) \leq N$, so $R_k(s_1, \ldots, s_k)$ exists.[/guided]