The incompressible Navier-Stokes equations in two dimensions are stabilized by a modified residual method, and then discretized by hierarchical elements. The stabilization is necessary to escape from the Ladyzhenskaya-Babuska-Brezzi(LBB) constraint and hence to achieve an equal order formulation. To expedite a standard iterative method such as the conjugate gradient squared(CGS) method, a preconditioning technique called the Hierarchical Iterative Procedure(HIP) has been applied. In this paper, we increased the order of interpolation within an element up to cubic. The hierarchical elements have been used to achieve a higher order accuracy in fluid flow analyses, but a proper efficient iterative procedure for higher order finite element formulation has not been available so far The numerical results by the present HIP for the lid driven cavity flow and others showed the present procedure to be stable, very efficient and useful in flow analyses in conjunction with hierarchical elements.