Save Object in Unity!

Hi,

I am following penelope tutorial, I have created an object in the scene. According to tutorial, I have to save this in Prefeb and delete it from scene. I am trying to figure out how can I save this object in Prefeb and delete it from scene, I can delete it from the scene using edit->delete. But could not figure out how can I save in Prefeb…
Please help?

Thanks,

create a prefab in the project pane, then drag the object into it, then you can delete it in the scene