You could use the delay correct ? and I am not sure why you are using the clone as you have two different divs.. try the below script
$(document).ready(function(){
$('.msg1').fadeIn('3000')
$('.btn2').on('click', function(){
$('.msg1').hide();
$('.msg2').fadeIn();
$('.msg2').delay(2500).fadeOut(800);
$('.msg1').delay(4000).fadeIn(800);
});
});