I am pretty sure this is possible, but I am not sure on specific details. The basic idea is to copy the image of the installation CD to the windows partition, boot off the image and run the installation process.
That's the theory. In practice you probably need some sort of boot floppy to get started. This needs to use the 'loopback device' to mount the CD image as if it was an actual partition, and then start the installation process.
Maybe MDK provides such a thing already?
There are certainly some clever tricks around for this sort of thing. Using
you can boot knoppix without either a CD or floppy, but I'd be very surprised if the same thing worked for MDK.