I use this recipe and method at least once a month. You can leave out the sugar and vanilla extract to just have a plain yogurt. Any % milk can be used, I use fat free.
You'll need a method of incubation. I use a medium sized styrofoam cooler with lid, and a couple of dish towels. Any cooler will work. Make sure when you put your jars inside that the lid will close,and there isn't to much extra space. The warm jars themselves will maintain the temperature.
You'll also need containers to pour your yogurt into. I prefer glass jars (mason/canning jars) But old glass mayo jars etc. would also work great. Sterilize your containers before you begin, or while you're heating the milk mixture. Do this by boiling the jars for about 10 minutes in a large pot OR washing them and placing them right side up on a cookie sheet. Place in the oven and set to 350. bake for 20 minutes.