1.Login to your blogger dashboard--> layout- -> Edit HTML

2.Scroll down to where you see </head> tag .

3.Copy below code and paste it just before the </head> tag.

<style type='text/css'>
#lbk-menu1 ul {
 list-style: none;
 margin: 0;
 padding: 0;
 font-family: Arial, Helvetica, sans-serif;
 font-size: 12px;
 font-style: normal;
 font-weight: bold;
 text-decoration: none;
 }

#lbk-menu1 {
 width: 200px;
 margin: 10px;
 border-top-width: 2px;
 border-right-width: 2px;
 border-bottom-width: 2px;
 border-left-width: 5px;
 border-top-style: solid;
 border-right-style: solid;
 border-bottom-style: solid;
 border-left-style: solid;
 border-top-color: #000000;
 border-right-color: #000000;
 border-bottom-color: #000000;
 border-left-color: #000000;
 }

#lbk-menu1 li a {
 text-decoration: none;
 border-top-width: 1px;
 border-right-width: 1px;
 border-bottom-width: 1px;
 border-left-width: 1px;
 border-top-style: none;
 border-right-style: none;
 border-bottom-style: solid;
 border-left-style: none;
 border-bottom-color: #000000;
}
#lbk-menu1 .notopbrdr0xNone {
 border-top-style: none;
 border-right-style: none;
 border-bottom-style: none;
 border-left-style: none;
 }

#lbk-menu1 li a:link, #lbk-menu1 li a:visited {
 color: #000000;
 display: block;
 background-color: #FFFF00;
 padding-top: 6px;
 padding-right: 0;
 padding-bottom: 6px;
 padding-left: 10px;
 }

#lbk-menu1 li a:hover {
 color: #FFFFFF;
 background:  #000000;
 padding-top: 6px;
 padding-right: 0;
 padding-bottom: 6px;
 padding-left: 10px;
 }

</style>

<!--[if IE]>
<style type="text/css" media="screen">
#lbk-menu1 ul,#lbk-menu1 ul li a{ height: 1%}
<![endif]-->

4.Now save your template.

5.Go to Layout-->Page Elements and click on "Add a gadget".

6.Select "html/java script" and add the code given below and click save.

<div id="lbk-menu1">

<ul>

<li><a href="#">Home</a></li>

<li><a href="#">HTML</a></li>

<li><a href="#">CSS</a></li>

<li><a href="#">Java Script</a></li>

<li><a href="#">Templates</a></li>

<li><a href="#">About</a></li>

<li><a href="#">Contact</a></li>

<li><a href="#" class="notopbrdr0xNone">Privacy Policy</a></li>

</ul>

</div>

You are done.

Demo