Paper wallets come with two keys: Public and Private (with or without passphrase). Public key is used for people/entities to deposit money onto your wallet whereas the private key is used when you want to send/pay the money from your wallet.
Steps involved in creation are:
Type the URL to https://bitaddress.org in your browser, preferably Chrome/Mozilla. Please make sure that the URL is "Https" and not "http" and there is a lock sign in the URL line of the browser.
Once the page opens up, right click anywhere on the page and select "save as .." and savel the .htm file onto your desktop.
Disconnect the computer from the internet. This is very crucial to ensure that no malware in your computer is able to connect to internet and transmit your wallet address.
Once disconnected from internet, double click on the file that you saved in step 2. It will open up the bitaddress.org page without being on the internet. If you have a wireless router at your place, then it is a good idea to turn it off for added security.
By moving the cursor around the screen anywhere, it will generate a wallet address for you and display it on the screen. This wallet however has no encryption.
Click on the paper wallet tab (second tab).
Select following settings for creating single wallet - (1) Check on hide the art box, (2) Check the BIT 38 encrypt box, (3) Enter a passphrase (and write it down securely), enter "1" under addresses per page and addresses to generate boxes, and then (4) click on "generate" button. This will create your secured and encrypted paper wallet.
At this point you are ready to print the wallet.
Ensure that your printer is not connected to internet and that you are connecting the computer to the printer via the physical cable.
Click on "print button" to print the wallet. It will print the Public key and the QR code and the private key and the QR code. It will not print the passphrase. You can click print again to create a backup copy. Make sure you write down the passphrase because if you lose the passphrase then the wallet is lost forever and it can't be recovered.
At this point, you should clear your browser's cookies and cache and then restart the computer and turn the internet connection back on.
And that's it..enjoy dealing in crypto world!