I get asked this question a lot. The following links will direct you to an author friend of mine, Susan Dennard, who outlines the process far more eloquently and succinctly than I ever could:
A quick note: What works for me, will not work for everyone. Remember that writing is an individual, personal process, and you should experiment to find a process that works best for you.
Discussions on craft—plot, characters, setting, and more!
Thoughts on staying inspired and leading a creative life:
Thoughts on writing queries, trying to find an agent, and the submission process:
A look at the publishing process after signing a book/series contract.
A few of my favorite books on craft and creativity: