Go to Program and Features part of Control Panel, on the left hand side click on the “Turn Windows features on or off” link.
Now click on the Internet Information Services check box.
If you’re a developer you are going to want to expand it and explore the sub-components as well. By default it installs all the stuff needed to host a website, and you are probably going to need some of the more developer centric components as well.
After clicking OK, this dialog will appear on your screen for a while.
When its done, fire up your browser and navigate to localhost.
That’s all there is to it.