This is how I deflasked paph seedlings (for the first time). I remove the seedlings from the flask, and try to keep the whole mass of agar and seedlings intact. Then I start breaking chunks of agar off the roots and get as much off as I can. Then I rinse the roots of most of the agar leaving the roots all intact and together. Then I put the mass of seedlings in a fine bark, charcoal, perlite mix and water with distilled water. I had the mix soaking for 24 hours in a weak fertilizer solution of water. Make sure you put the base of the seedlings a tiny bit below (supplier said 1/4 of an inch) of the top of the mix.
I then put the compot of seedlings into a makeshift terrarium of a critter keeper w/ lid, clear plastic wrap, and a rubberband. I put the compot into the critter keeper, put the lid on, put wrap on and rubberband it on. I poke a few holes in the wrap after a few days, and maybe once a week or so put more and more holes in to harden off the seedlings.
I was going to do the agar on method but heard from a lot of people (including the supplier) that if it's bot the right agar, after a few weeks it can harden and can harm the seedlings and block nutrient and water uptake.
Here's a picture of the Paph. liemianum flask from
Fox Valley Orchids: