I'm so glad you asked this question! One of my favorite websites that I can't stop raving about is called blurb.com. It is a really inexpensive way to make any type of professional looking, but personalized book, i.e. a travelogue or in your case a cookbook.
You are totally responsbile for designing and providing the layout for the book - the website provides downloadable software that is easy to use and where you can easily upload any pictures you want to include in the book. You can get glossy paper, hardcover, softcover whatever strikes your fancy.
As for specific suggestions, I think it would be great idea to take pictures of the steps of food preparation in addition to the finished recipe - this really helps novices as they get a visual representation of what you describe in the steps. Also, since you're giving it to personal friends - you can include pics of yourself with these friends and comment on shared experiences.
I think the best thing about this website, especially if you want to give this as a gift to several people is that you can order multiple copies without having to duplicate your work.
Take a look at the website - go the bookstore section link and look at cookbooks under "all categories" - the books you see are made by people like you and me.