FavIcon are one of the useful thing to 'brand' your blog, it will create an image that represent your blog, let say you own a Make money Blog and you're using Dollar ($$$) as your FavIcon so when people heard about your site name elsewhere, the first thing they would probably remember is your Site logo which is your FavIcon, second would be your content. And to be honest, i got these tips from BloogerBuster which is helping me a lot to creating this FavIcon however this trick wont be so useful for those who are still using IE 6.0 or any browser that doesn't have or support Tabbed browsing.
For the steps, you can simply go to BloogerBuster
Here's the steps
1. Ensure you have image file with 16 x 16 in dimension size. This should be in JPG/PNG format for use with the Favicon generator.
2. Go to your Blogger dashboard, create new post but don publish it, instead, upload your image files and copy the image source file [IMG SRC>
3. Go to your Layout, click on Edit HTML and find [/head> tags
4. Paste this code above it
[link href='http://your-icon-url.png' rel='shortcut icon'/>
[link href='http://your-icon-url.png' rel='icon'/>
5. Once you're done, save it and you are ready to see your new favicon, test it with your Firefox
For Gavicon Generator Site, you could try one of these
Or you can make it by yourself by reducing the image size into 16 x 16 and rename it as logo.ico with PNG extension.
If you found any issue, then try this code (From BloogerBuster)
[link href='http://www.blogger.com/favicon.ico' rel='icon' type='image/vnd.microsoft.icon'/>
Attention! To make the works, please replace [ with <