[step:Show that the constant map preserves every formula with parameters from $M$]Let $\varphi(x_1,\dots,x_n)$ be an $L$-formula, and let $a_1,\dots,a_n \in M$. Consider the $L(M)$-sentence
\begin{align*}
\varphi(c_{a_1},\dots,c_{a_n}).
\end{align*}
If
\begin{align*}
M \models \varphi(a_1,\dots,a_n),
\end{align*}
then $\varphi(c_{a_1},\dots,c_{a_n}) \in \operatorname{Diag}_{\mathrm{el}}(M)$, so
\begin{align*}
N^* \models \varphi(c_{a_1},\dots,c_{a_n}).
\end{align*}
Since $\varphi$ is an $L$-formula and $N$ is the $L$-reduct of $N^*$, this is equivalent to
\begin{align*}
N \models \varphi(j(a_1),\dots,j(a_n)).
\end{align*}
Conversely, if
\begin{align*}
M \not\models \varphi(a_1,\dots,a_n),
\end{align*}
then
\begin{align*}
M \models \neg \varphi(a_1,\dots,a_n),
\end{align*}
so $\neg\varphi(c_{a_1},\dots,c_{a_n}) \in \operatorname{Diag}_{\mathrm{el}}(M)$. Hence
\begin{align*}
N^* \models \neg\varphi(c_{a_1},\dots,c_{a_n}),
\end{align*}
and therefore
\begin{align*}
N \not\models \varphi(j(a_1),\dots,j(a_n)).
\end{align*}
Thus, for every $L$-formula $\varphi(x_1,\dots,x_n)$ and every tuple $(a_1,\dots,a_n) \in M^n$,
\begin{align*}
M \models \varphi(a_1,\dots,a_n)
\iff
N \models \varphi(j(a_1),\dots,j(a_n)).
\end{align*}[/step]