Erm... did you not even TRY to read my blog? It IS step-by-step instructions.
I'll go ahead and post it here, in case links scare you, or what ever.
First, you need to make a new folder on your computer somewhere - you can name it TSL mods(for K2, or just KOTOR mods for K1. I'd advise you NOT to stick mods for both games in 1 folder), and place it on your desktop if you want easy access, but I put mine in with my documents. This is where you want to save the mods that you download. Be sure to read the mod descriptions as you pick and choose what you want to try out. Some mods can only be activated with cheats, and I prefer not to go there.
Oh yeah, and if you don't have WinRar, you'll need it. http://www.rarsoft.com/download.htm Once you've saved all the mods you want to try, you can start installing them.
There are 2 different types of mods. Ones that use the TSL patcher, and ones that don't. I used to like the ones with the patcher more (they're pretty quick & easy to install), but now that I know what I'm doing a little more, the other ones are actually my preferred. They come OFF a lot easier (and that's a REALLY good thing).
Mods come with a 'read me' file, that usually tells you what to do from here. The ones with the TSL patcher are pretty easy, if they ask you where you'd like them installed, go : Computer > C drive (or whatever your computer's main drive is called - mine's called 'Princess of Power'!) > Program files > LucasArts, then > KotOR 2.
Really be sure to read the 'read me's, though, because some mods go into modules and such. If a mod suggests that you back up your files FIRST, do so! This usually means that something in the original game is going to be overwritten. Make a copy of whichever folder you will be extracting to, and stick it somewhere you can find it later. If you don't and a mod doesn't work for you, you'll have to uninstall the game from your PC, and completely re-install it again. Which sucks.
Now, if you run on Vista, you'll require an extra couple steps in this process. You won't be able to extract files that don't have the TSL patcher directly into the override (or modules, etc.). You'll need to create yet ANOTHER folder (I just named mine 'Mods' and stuck it on my desktop). Extract the mod's files to this folder. Then copy the files that you just extracted, and paste them where they go. And voil