Basically, an electron dot diagram is just a diagram showing the number of valence electrons a certain atom has (valence electrons are electrons in the outer-most electron level of an atom). The 5 steps they give you just tell you the order of where to put each dot. The picture I attached gives a better representation.
The number around the symbol shows the order of where you would put the dot. The 1 and the 2 on the top show that the first two dots go there, and the 3, 4, and 5 go around the rest of the sides. When it gets to 6, 7, and 8, the numbers go back around to fill in each side twice.
