Blogger now has an enhanced blogroll that enables you to customize and share your Blogroll. It can even be set up to display short text snippets of the most-recently updated posts from your favorite blogs. You also have the option of adding blogs manually or importing them via your Google Reader Subscriptions.
OK let’s Do it  :)

Step 1 :
go to  your Dashboard. Click "Layout" link. This takes you to the "Add and Arrange Page Elements"page.  Click on the "Add a Gadget link"
Step 2 :
Click on the "+" sign to the right of the "Blog List" gadget. This brings up the "Configure Blog List" dialogue box.
Step 3 :
Type a Title for your blog list into the "Title" box. & Click on the drop-down box labeled "Sort." Indicate whether you want to sort your list of blogs based on the most recently updated blogs or alphabetically by blog title.= Click on the next drop-down box labeled "Show." Choose whether you want to display all your selected blogs or whether to display 5, 10 or 25 blogs at a time.= Put a checkmark against in the tick-box of each option you want displayed. The options you may choose to display are the icon, the title of the most recent item, a snippet of the most recent item and/or the date of the last update
Step 4 :
Add blogs to your list by clicking on the link that reads: "Add a blog to your list."  click on the "Add to List" button. A pop-up window will open.
Step 5 :
Choose the method that you want to use to add blogs to your list. => The default option is to enter the URL of the blog. and then click add.=> If you want to import subscriptions from your Google Reader subscription instead, click on the radio button for this option. Make your selections from the list of options that appears. Click the "Add" button once you are done.*Click on "Save Changes." Your Blogroll will be added to your Blogger blog.
Step 6 :
To add or delete blogs, form your Blogroll, go back to the "Add and Arrange Page Elements" page (See Step 1 above.) To the right of window, click on the "Edit" link under the title of your Blogroll. Make your changes and then click on "Save Changes," and it will update your Blogroll.