How To: Successfully set up Amazon EC2 micro instance

Amazon Web Services is a very rich arsenal of web services. Surprisingly, using them is really easy and simple. I tried my first hands on Amazon's Elastic Cloud, in layman's terms, it is a server
I tried to set up a AWS micro instance on Amazon EC2. The setup is very simple and we can set a system running in just few minutes. I could also quickly set up a tomcat server running on it.
I will quickly list down the steps that I followed.

(1) From EC2 console launch a new Instance. For quick start select any AMI ( Amazon Machine Image) that suits your need. It can later be changed or upgraded.

(2) Once an AMI is selected, fill in the details related to instances (Micro instance's usage falls under free tier for the first year), kernel, ram, monitoring details etc.

(3) Next, create a key-value (optional)

(4) Select proper security group. (This is also important to keep your instance secure. Once I got my instance hacked due to careless firewall settings ). Don't allow many ports to be open, only the few that you intend to use for your need.

(5) Review everything and click 'Launch' and done!! Your instance will be ready to use within few minutes.
(6) Create a new key-pair and download the private file.

(7) Once the status of the instance turns 'running' it can be used to connect.

$ ssh -i aws.pem ec2-user@ec2-XXX-XXX-XXX-XXX.compute-1.amazonaws.com
(8) This is it!! Time to have fun!!