As Ive noticed everyone got complicated to explain on how to add favicon on your blogspot blog , that’s why i am giving you the simplest and easier   way  to put your favicon on your blogspot blog, i think!  so first you must know what is favicon is? favicon is a small image that displayed on the beginning of your address bar like youve seen on the image below

How to do that? all you have to do is make an image on photoshop or any photo(s) that available with yah, and if you chosen your photo already just generate it into http://www.chami.com/html-kit/services/favicon/ and after you uploaded your photo and downloaded it already all you have to do next is go to your blogspot blog account and in your Edit html click the  small button on the left that named Expand widget then look for xml  code below

<title><data:blog.pagetitle/></title>

IF you locate the code on the top ,just put this code below on the given code at the top, like the screenshot below

<link href='ICON FILE URL' rel='shortcut icon'/>
<link href='ICON FILE URL' rel='icon'/>

Change the icon file url into your photo url..how to get your photo url?? just upload your favicon photo in any of the following image hosting site’s ,tinypic.com or photobucket.com then get the direct link and there you go ..

lastly save it and view your blog.. i hope you understand what im trying to teach..lol