First, welcome to blogger! I'm pretty new around here too, but it has become my favorite blogging sites. And I've attempted a blog on lots of different sites.
I could be totally wrong on this, but I think it is through the "Gadgets" on your dashboard. You click on the link "Add a Gadget" and then select the "Blog List" option. Then click on the blue plus sign. That will give you different options on how it shows up on your blog. On mine I have it titled as "Awesomeness You Should Read." You can also choose which blogs to list, how to list them, and how much of it shows. I just chose alphabetically and the title only, but there's a few different ways.
Another option is how the wonderful June has done a page of her favorites.
Hope that helped and good luck!
<3,MN
