Standard assessment methods in higher education are mostly one-dimensional and leave students and teachers dissatisfied. We propose a blended assessment approach to foster student engagement, self-efficacy, and overall satisfaction by using a digital self-test as preparation for an exam. We designed, implemented, and evaluated a course where students both created and used a self-test. We found that this diverse assessment strategy engages students, increases their learning outcome, and leaves them generally more satisfied. Based on our findings, we derive a guideline to implement self-tests in a course in higher education that enables teachers to use this blended assessment approach in the future. We show that student engagement, satisfaction and learning outcome is perceived to be much increased and that various steps need to be taken to ensure a successful course implementation such as transparent communication and rigorous mentoring by faculty staff.