Follow the Following steps:
1. Login in to your blogger dashboard .
2. Click on the layout Link.
3. Click on Add a Gadget Link.
4. Then Select HTML/JavaScript Add .
5. Paste the Following code and your Done.
<script src='http://best2know.googlecode.com/files/Recent%2010%20Post%20instead%20of%205.js' type='text/javascript' />
<script>
var numposts = 10;
var showpostdate = false;
var showpostsummary = false;
var numchars = 100;
</script>
<script src="http://YOURBLOG.blogspot.com/feeds/posts/default?orderby=published&alt=json-in-script&callback=rp"></script>
<br />
<div class="clear"></div><p style="text-align:center;"><a href="http://www.best2know.info/2010/04/how-to-show-10-posts-instead-of-5-posts.html" title="Grab this wiget" target='_blank'><b>Grab this Widget</b></a></p>
In the Above code change the YourBlog.blogspot.com with your link of your site or of your custom domain.
And if you want to show more than 10 posts then change the number which is highlighted in red color to the number of how much posts you want to show
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Thanks for this tutorial but i think their should automatic fetching of url of the feed in this for easy installation.
@Anonymous
I had made the url for auto fetching but didnt added here because the auto feature requires it to be put in the main source code by going to Edit HTML page it would be difficult thats the reason i havent .