Baking Textures

4.  Add a plane
  • 3D View menu >> Add >> Mesh >> Plane
Note:
  • You don't have to use a Plane.  You can use any game object you want
5.  Add a material to the Plane
  • 3D View >> Plane selected
     
  • Properties menu >> Material button >> New
6.  Add a texture to the material
  • Properties menu >> Texture button
     
  • Select an empty Texture Channel >> New