Just did the MUC-DEL-XXX transfer you were planning.

The LH flight landed 20 mins early at 6.40. I was out of immigration and customs (travelling in C, priority luggage 2nd/3rd on the belt) at 7.10/5. Immediately after leaving the customs area you make a left. There you have to show your etix printoout to a guard and then a warden. He puts your name on a list and you get to board the intra terminal bus (that runs 'every 20mins') in the order of signing in with this guy. The bus holds only 20-30 persons plus luggage. I was the last person let on after misc BA/AY pax. The bus took quite a bit of time: it drives pretty much from the east end all the way to the west end to get across the end of RWY28:
http://local.google.com/maps?f=q&sou...77162&t=h&z=14
On the way you get to see a collection of ancient and new aircraft the IAF has to offer. My highlight was to see a SU IL-96 taxining for takeoff. The bus picked up various policemen/paramilitary on the way who were looking for a lift after their shift guarding the field ended.
The bus dumps all pax and luggage infront of the domestic 1C terminal. Expect the universal scramble and elbow fights to get your luggage back. Checkin for the luggage was easy, I had tagged the luggage thru with LH and checked in for the 9W flight online. Both tag and BP were ripped up and new tags/BP issued. Security was the usual non-sensical chaos (my liquids were merrily ignored as CISF was busy trying to 'seize' toys and chocolates a poor guy working in the gulf was bringing home). I was airside waiting to board my 9.20 flight at 8.05am.

Summary: the transfer to catch the 9am PNQ flight is certainly doable, but knowledge is required and definitely you should arrange for a plan B.