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'>
#menu8 {
 width: 200px;
 margin: 10px;
 border-style: solid;
 border-color: #656556;
 border-size: 1px;
 border-width: 1px;
 }

#menu8 ul {
 list-style: none;
 margin: 0;
 padding: 0;
 }

#menu8 img {
border: none;
}

#menu8 li a {
 height: 32px;
   voice-family: &quot;\&quot;}\&quot;&quot;;
   voice-family: inherit;
   height: 24px;
 text-decoration: none;
 }

#menu8 li a:link, #menu8 li a:visited {
 color: #656556;
 display: block;
 background:  url(http://4.bp.blogspot.com/_4HKUHirY_2U/Sw450OBjx3I/AAAAAAAAAVk/DfM4Rf0JsyU/menu8.gif);
 padding: 8px 0 0 20px;
 }

#menu8 li a:hover, #menu8 li #current {
 color: #474739;
 background:  url(http://4.bp.blogspot.com/_4HKUHirY_2U/Sw450OBjx3I/AAAAAAAAAVk/DfM4Rf0JsyU/menu8.gif) 0 -32px;
 padding: 8px 0 0 20px;
 }
</style>

Note :Please Host menu8.gif yourself.

4.Now save your template.

5.Go to Layout--&gt;Page Elements and click on "Add a gadget".

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

<div id="menu8">

<ul>
                  
<li><a id="current" href="#">Home</a></li>

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

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

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

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

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

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

</ul>
  
</div>

You are done.

Demo