The first coat is the one that actually seals the stock. I use about a third of the can on the first coat. Keep applying top to bottom until it's too sticky to work with. Then wipe it down so there's no runners. This gives you maximum penetration and reduces the number of follow up coats .
Permalyn is a modified polyurethane that combines the qualities of a polyurethane and a spar varnish. It takes about a week for the polyurethane element to fully cross link. But it "dries" in hours. If you don't wait at least 24 hrs, all you're doing with additional coats is removing almost as much superficial finish as you're applying. Wait is faster.
Time makes the varnish harder. Still flexible which is the genious of the stuff. But the best time to apply abrasives to get a great finish is after a couple of days, a week is way to late.