The instructions from Breaking the Vicious Cycle appear in bold below. I have added my thoughts in italics.
Things you will need for this recipe:
Milk - whichever variety is your favorite should be fine. I have made this recipe using skim, 2%, Whole and REALLY Whole (from a local creamery). The best results came from the creamery milk. I wouldn't recommend using skim milk, as the consistency of the final product just doesn't seem right.
Starter Yogurt - this should be unflavored and unsweetened. I like Stonyfield Farm Plain Non-Fat yogurt, but Dannon or even store brand can work in a pinch.
Yogurt Maker - This is the yogurt maker I use. I also bought an extra set of jars, so I can make a full batch of yogurt before the other runs out.
Bring one quart or liter of milk to simmer stage and remove from heat. Stir often to prevent scorching and sticking to the bottom of the pan.
For the yogurt maker I use, it takes 5 1/4 cups of milk to fill the jars. I tend to use one of the jars as my measuring cup. I just pour 7 jarfuls of milk into a saucepan.

I like to slowly bring the milk to a simmer, because it prevents the scorching mentioned above. It also gives me a chance to skim the top of the milk a few times during the process to remove the "skin" that forms. To skim the yogurt, I use the metal pasta spoon that I showed in the Chicken Soup post. I honestly can't say that I've ever used that spoon for pasta purposes, but it has come in handy in so many other kitchen situations.
Cover and cool until it has reached room temperature or below (may be placed in refrigerator to hasten cooling). It is very important that you allow the temperature to drop sufficiently or you will kill the bacterial culture you are now ready to introduce.
Place the saucepan on a trivet and let stand on the counter for around 30 minutes. Skim off any "skin" that has formed. Then, place the saucepan in the refrigerator, covered by a plate or towel. It takes a little over an hour to complete the cooling process once in the refrigerator.

Remove about 1/2 cup cooled milk and make a paste with 1/4 cup starter yogurt.
I do this step in a pitcher I picked up from the Target $1 section (yay cheap things at Target!!). I use a whisk, because it seems to combine the two ingredients best. Also, in the following picture, you'll notice I used 1/3 cup of yogurt...I usually just eyeball the amount of milk and yogurt used to make the "paste." It usually isn't paste-like at all.

Mix the paste with the remainder of the cooled milk and stir thoroughly.
Pour the rest of the milk into the pitcher with the "paste." Use the whisk to combine.
Pour the mixture into any appropriately-sized container, cover, and let stand for at least 24 hours at 100 - 110 degrees Fahrenheit.
I pour the yogurt into my cute little jars (which is where the pitcher comes in handy) and fill to just below the rim. As the yogurt firms, the volume in the container will decrease slightly.

Place the cover on the yogurt maker and remember to turn it on. :-)

Here's a little tip...if you are using the kind of yogurt maker I am, DO NOT put the lids on the jars while the yogurt is processing. I have done this once and the result was just liquidy goo that tasted and smelled like yogurt, but had no resemblance to the substance.
(PS - this is where I dropped my camera...d'oh!. I'll update the rest with pictures when the new one comes in)
After 24 hours has passed, remove the jars from the yogurt maker, place the lids on the jars and place in the refrigerator.
Or, if you have no will power and simply can't resist, drizzle honey in one of the jars and grab a spoon.
I have been making the yogurt off and on for over 2 years. Sometimes, it comes out perfectly firm, other times it is closer to yogurt soup. The flavor is always the same - tart, but fresh and tasty.
My favorite way to eat the yogurt is to put frozen strawberries in the bottom of a bowl, pour the yogurt over them and then drizzle about a tablespoon of clover honey over it. Let this sit in the refrigerator for about an hour - the strawberries will thaw just enough and when you stir it up, the yogurt becomes a lovely pink color.
As soon as my new camera arrives, I will post a picture of the above treat. I can eat it for breakfast, lunch, dinner and even dessert.