I think this what you want:

DECLARE @blockinfo TABLE

(

spid INT ,

waitresource VARCHAR(100) ,

typ VARCHAR(25) ,

ecid INT ,

blocked INT ,

lastwaittype VARCHAR(100) ,

login_time DATETIME ,

open_tran INT ,

cmd VARCHAR(100)

);

INSERT INTO @blockinfo

( spid, waitresource, typ, ecid, blocked, lastwaittype, login_time,

open_tran, cmd )

VALUES ( 54, '', 'Blocking', 0, 0, 'MISCELLANEOUS',

' 2014-03-07 11:27:08.743', 2, 'AWAITING COMMAND' ),

( 57, 'RID: 11:1:2937:8', 'Blocking', 0, 54, 'LCK_M_U',

' 2014-03-07 11:27:34.197', 2, 'UPDATE' ),

( 57, 'RID: 11:1:2937:8', 'Blocked', 0, 54, 'LCK_M_U',

'2014-03-07 11:27:34.197', 2, 'UPDATE' ),

( 59, 'RID: 11:1:2937:8', 'Blocked', 0, 57, 'LCK_M_U',

' 2014-03-07 11:27:38.457', 2, 'UPDATE' ),

( 56, 'RID: 11:1:2937:8', 'Blocking', 0, 57, 'LCK_M_U',

' 2014-03-07 11:36:27.660', 2, 'DELETE' ),

( 56, 'RID: 11:1:2937:8', 'Blocked', 0, 57, 'LCK_M_U',

' 2014-03-07 11:36:27.660', 2, 'DELETE' ),

( 55, 'RID: 11:1:2937:0', 'Blocked', 0, 56, 'LCK_M_S',

' 2014-03-07 11:49:10.520', 0, 'SELECT' );

WITH BlockingBehaviour

AS ( SELECT -- distinct

blocking.[spid] ,

blocking.[waitresource] ,

blocking.[typ] ,

blocking.[blocked] ,

blocking.[lastwaittype] ,

blocking.[login_time] ,

blocking.[open_tran] ,

blocking.[cmd] ,

1 AS block_level

FROM @blockinfo AS blocking

WHERE blocked = 0

UNION ALL

SELECT --distinct

blocked.[spid] ,

blocked.[waitresource] ,

blocked.[typ] ,

blocked.[blocked] ,

blocked.[lastwaittype] ,

blocked.[login_time] ,

blocked.[open_tran] ,

blocked.[cmd] ,

BB.block_level + 1

FROM @blockinfo AS blocked

INNER JOIN BlockingBehaviour AS BB ON blocked.blocked = bb.spid

)

SELECT DISTINCT

spid ,

waitresource ,

typ ,

blocked ,

lastwaittype ,

login_time ,

open_tran ,

cmd ,

block_level

FROM BlockingBehaviour

ORDER BY block_level ASC ,

typ DESC;

Notice I took the data you gave and put it in a table so I could provide a tested solution. I also think it would be more clear if the blocked column was named either blocked_by or blocker.