Hi All,
My house is on a hill so the front is at level with the street and the back foundation is partly exposed. The garge is part of the basement and level with the driveway.

Over the years water coming down from the roof and building up behind a 2 1/2' retaining wall next to the garage has pushed out a couple of cinder blocks on the very front and bottom of the foundation right next to the garage. Picture a cinder block wall where the bottom two blocks mortar has been eaten away and the blocks are just sitting there an inch or so below the rest.

The old retaining wall was removed and the gutters and downspouts repaired, now I want to fix those blocks before it becomes a larger issue.
What is the best way to take care of these? New blocks put in place will be sitting too low really so should I pour in a thin layer of concrete to give a small lift then add mortar on top of that to hold onto the bottom of the new block and keep the gaps from being too high?
The blocks are not really broken or anything, it just seems that a lot of moisture over the years softened the mortar till it eroded away and let the blocks settle.

I will be putting in a new retaining wall with better draining once this is repaired. Just wondering about the best method to solidify those blocks in their proper place.