If you want to displaying Recent posts in your sidebar or anywhere in to the layout of blogger you can do it.
When you update another new post in to your site then auto showing that post inside of this gadget with image.
1. First go to the blogger and click in to the Title of you site if have multiple blogger.
2. Now click on "Layout" options.
3. Now click on "Add a Gadget".
4. Search now "HTML/Javascript" Options and paste the below all code inside the empty box.
<style type='text/css'>
img.recent_thumb {padding:1px;width:55px;height:55px;border:0;
float:left;margin:10px;}
.recent_posts_with_thumbs {float: left;width: 100%;min-height: 70px;margin: 5px 0px 5px 0px;padding: 0;font-size:12px;}
ul.recent_posts_with_thumbs li {padding-bottom:5px;padding-top:5px;min-height:65px;}
.recent_posts_with_thumbs a {text-decoration:none;}
.recent_posts_with_thumbs strong {font-size:10px;}</style>
<script style='text/javascript' src='https://kedar-adhikari.googlecode.com/svn/Recent_Post.js'></script>
<script style='text/javascript'>
var numposts = 5;
var showpostthumbnails = false;
var displaymore = true;
var displayseparator = false;
var showcommentnum = false;
var showpostdate = false;
var showpostsummary = true;
var numchars = 100;</script>
<script src='http://www.howgrab.blogspot.com/feeds/posts/default?orderby=published&alt=json-in-script&callback=showrecentpostswiththumbs'></script>
<hr/><small></small>
Note:. You need to replace or change some code from the above code for example see hereimg.recent_thumb {padding:1px;width:55px;height:55px;border:0;
float:left;margin:10px;}
.recent_posts_with_thumbs {float: left;width: 100%;min-height: 70px;margin: 5px 0px 5px 0px;padding: 0;font-size:12px;}
ul.recent_posts_with_thumbs li {padding-bottom:5px;padding-top:5px;min-height:65px;}
.recent_posts_with_thumbs a {text-decoration:none;}
.recent_posts_with_thumbs strong {font-size:10px;}</style>
<script style='text/javascript' src='https://kedar-adhikari.googlecode.com/svn/Recent_Post.js'></script>
<script style='text/javascript'>
var numposts = 5;
var showpostthumbnails = false;
var displaymore = true;
var displayseparator = false;
var showcommentnum = false;
var showpostdate = false;
var showpostsummary = true;
var numchars = 100;</script>
<script src='http://www.howgrab.blogspot.com/feeds/posts/default?orderby=published&alt=json-in-script&callback=showrecentpostswiththumbs'></script>
<hr/><small></small>
Replace the "howgrab.blogspot.com" with your own site link
Change the value of "true to false or false to true"
The value "true" means showing to the value or
The value "false" means will be hide the value from site
Now finally save the gadget and go to the your site and see recent post maybe there is has been showing.