Cover the floor with dropcloths. Remove any furniture in the room and place plastic dropcloths on the floor. This will help prevent paint drips from getting on your flooring.
Tape the seams between the walls and ceilings. Use painter's tape and run a line of tape around the top of the room. This will help keep your ceiling color from getting on the walls.
Paint the ceiling blue. Use a regular ceiling paint tinted to the blue of your choice. Cut in around the edges of the ceiling with a brush and then roll out the rest of the ceiling. Let this dry for four to six hours.
Mix together your paint glaze. Mix 4 parts of glaze to 1 part of white paint in a small bucket.
Create the clouds on the ceiling. You can use a bunched-up rag or a sea sponge. Dip this into your paint/glaze mix and dab it onto the ceiling. Use random patterns, just like real clouds. Make some big, some small and avoid giving a uniform shape to every cloud. Continue until you have created the desired amount of cloudiness on the ceiling.