This is a different order than how it is in the book because this order makes a $h!t-ton more sense.

1. Pick a Race and Class (book pg 33 and p 53, respectively, this link for allowable race class combinations)- Note racial bonuses and penalties (Ability Scores, Attack modifiers, Size modifiers, save modifiers, etc.) on your character sheet. Do the same with class bonuses and penalties. You can go for a Racial Level as opposed to a Class Level if your race allows it. Note the bonuses and penalties, if any.

2. Roll or Assign Ability Scores (book pg 27 or this link, respectively) - Take into consideration the Ability Scores that are recommended for your Class. Note Ability Score modifiers according to the chart on book pg 27. Note additional spell slots according to the chart on book pg 30 (Arcanists use INT, Healers and Paladins use SPT). Also keep in mind that a caster cannot cast spells unless her associated Ability Score is AT LEAST 10 (again, INT for Arcanists, SPT for Healers and Pallies).

3. Pick Skills (book pg 112) - Determine the number of skill points you have to distribute among skills using the chart. Pick which skills, taking into consideration what are class skills and what bonuses you get for skills (see you race's section). The bonuses are to USE the skill - they are not bonus skill ranks. You can pick any skill, but ranks in class skills cost 1 point, whereas ranks in non-class skills cost 2 points. Also, the max number of ranks you can have in a skill is your character lvl plus 3.

4. Pick Feats (book pg 138) - Every character gets a feat at level 1. Some races and classes let you pick an additional feat. See chart on book pg 54 to see what character levels provide feats, and see your class or race chart to see when/if they provide feats. When picking feats, take into consideration any prerequisites. Note modifiers to attacks, initiative, etc. if applicable.

5. Pick Spells/Abilities (in your class section) - If you have to pick spells or abilities, do so now. Sometimes, you have no choice - just note what spells and/or abilities you have.

6. Purchase Equipment (class section or book pg 176) - You can just go with the default gear and gold setup as noted in your class section, or you can roll for starting gold according to the chart on pg 176 and buy a more customized set of gear.

7. Check Your Math - (book pg 217 and class or racial level sections) Check to make sure all stats and scores have values. Hit Points at level 1 = Stamina Score + Stamina Modifier + Class Hit Die (rolled).

8. Round Out Your Character (book pg 163) - Pick Alignment, Affiliation, Name, Gender, Age, etc.


Leveling Up (book pg 54, and class/race charts)
When you gain a level, check the chart on Character levels and also the charts for your class(es) and racial level (if applicable). For Hit Points, roll your Class Hit Die and add your Stamina Modifer - then add that to your hit point maximum.