Local Builder Pattern Broken in Java?

Time and again, when I want to break up a longish Java method into smaller parts, I find myself wishing back the by-reference parameters and access to surrounding local procedure variables of Pascal. Now, I know that the discipline of trying to always pass all required arguments explicitly, and to not rely on changes to by-ref params is often helpful. Nevertheless, sometimes it gets in the way. One fairly clutter free approach to get Pascal's features back goes like this:

public interface LocalBuilder {
T build();
}

and then:

public MyClass computeIt() {
 new LocalBuilder() {
   final int input1 = ...;
   final int input2 = ...;
   int state1 = ...;
   int state2 = ...;

   public MyClass build() {
     stepOne();
     stepTwo();
     return result();
   }

   private void stepOne() { ... }
   private void stepTwo() { ... }
   private MyClass result() { ... }

 }.build();
}

While this basically works, it has a few problems:

• Exceptions thrown by build() must be declared already on the interface. This is a serious problem.
• For native types such as int, one must provide dedicated interfaces such as LocalIntBuilder with an int build() method, or else go with boxing.

If anyone has a better pattern, I'd be glad to hear about it!