If you don't want to expand or extract the update files manually with a tool like 7-zip you can apply them to an extracted Windows 10 10586 image.

For example, if your Windows ISO or USB was mounted at drive E and your drive with lots of free space was D the command would look something like this:

Code:
Dism /apply-image /ImageFile:E:\Sources\install.esd /index:1 /ApplyDir:D:\Windows_10586
Then to apply cumulative updates individually to this image, in my example kb9999999.msu in C:\temp, the command would be:

Code:
DISM /Image:D:\Windows_10586 /Add-Package /PackagePath:C:\Temp\KB9999999.msu
If you want to apply more than one update you can copy all of the MSU files to the same directory (in my examples C:\temp) and then create the following batch file:

Code:
for %%a in ("C:\temp\*.msu") do (
DISM.exe /image:C:\Windows10586 /Add-Package /PackagePath:C:\temp\%%~na.msu
)
As a disclaimer, I have only tried these commands on a machine running a later version of Windows 10, I do not know if they would work in earlier versions of Windows such as 8.1 or 7.