I wrote a post on this 2 years ago, but I have refined my guitar recording technique.
There are MANY ways to do the same thing. I do only one, but it is very easy & fast. I like NOT using a laptop for these recordings…because the fans create background noise. That’s why I use a ZOOM H4
(2015 update – I use a Zoom H6, and do not need to do the “Audacity” step shon…)
For a CD recording I would use better gear (interface, laptop, several mics), but as I have to be my own video & audio engineer I want to make things E-Z!