Pretty much what Charlatan and maleficent said - the 'steam wand' thing goes in the milk, and heats it up. However, if you have the steam wand at the surface of the milk, you get the most froth - kind of 'bouncing' the milk container gently with the steam wand at the very surface of the milk should do it. You should also have a thermometer so you know when the milk is at the right temperature - I don't remember exactly what that is supposed to be, as it's been awhile, but I'm sure you can find recommendations elsewhere.
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