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Find a flat spot and build a cobblestone square

Build the square two more blocks up

Like this

Now start building a layer on the outside made out of brown wool

Then build outward. It must sort of look like steps

Be sure to curve the edges

Finished

Now layer the block to look stairs again

Go all the way around when layering

To know your done layering you should be able to fill in the square with exactly nine blocks

Cover the layers with brown wool

Like this

Add lava in the pit

Use cobblestone to cover everything except one square

Make a trail down your volcano for a visual lava trail

Once you meet the bottom spread out your lava

Mismatch your colors

Here's what it should look like

Go back and create grass patches with a dark green block

Here you go! Enjoy! :)