you go up to a chicken and one of the options should be "incubate". It'll take the egg and you'll have to wait about a minute. You can walk around but don't leave the street! At the end of the incubation period, it will give you a caterpillar.
When you are ready for your caterpillar to become a butterfly, feed it an egg. Make sure that you are in the location you want your butterfly to be (ie, your home) when you feed the bubble as it will free the butterfly immediately.
When you are ready for your caterpillar to become a butterfly, feed it an egg. Make sure that you are in the location you want your butterfly to be (ie, your home) when you feed the bubble as it will free the butterfly immediately.
Uhm... not an egg. You feed a Caterpillar any kind of bubble (Plain, Hard, Blue, or Tiny).
Learn AH. Find a chicken & click. Select Incubate. Pick the egg from the selection window. wait a minute. Get a caterpillar (incubating chicken gives caterpillar to you). When ready to release, feed caterpillar a bubble.
(like Andraemara, Mal'akh, and emliu said, but faster)