1. Create the widget folder structure: `src/site/widgets/custom-elements/<widget-name>/`.
2. Implement the widget component (`widget.tsx`) using React and convert it to a web component using `reactToWebComponent`.
3. Develop the settings panel (`panel.tsx`) with Wix Design System components and the `@wix/editor` widget API.
4. Create the `extensions.ts` file with `extensions.customElement()` and a unique UUID.
5. Update `src/extensions.ts` to import and use the new extension.
6. Verify the widget's functionality and appearance in the Wix Editor.