This feature will give you a label (tags) cloud widget for your TypoXP Blogger sidebar.

Step#1
Goto the Template>Page Elements page, make sure you have a label widget already installed where you want it (it can be moved around
later).

Step#2
Go to Template>Edit HTML. Leave the Expand Widget Templates box UNCHECKED (default).

Scroll down and find your Label Widget code in your template. Will look something like this.

<b:widget id='Label1' locked='false' title='Labels' type='Label'/>

Copy the following code, then highlight the label widget as shown and replace it with a paste.

<b:widget id='Label1' locked='false' title='Tags' type='Label'>
<b:includable id='main'>
<b:if cond='data:title'>
<div id="icon-tags"><h2><data:title/></h2></div>
</b:if>

<div class='widget-content'>
<div id='labelCloud'/>
<script type='text/javascript'>

// Don't change anything past this point -----------------
// Cloud function s() ripped from del.icio.us
function s(a,b,i,x){
if(a>b){
var m=(a-b)/Math.log(x),v=a-Math.floor(Math.log(i)*m)
}
else{
var m=(b-a)/Math.log(x),v=Math.floor(Math.log(i)*m+a)
}
return v
}


var c=[];
var labelCount = new Array();
var ts = new Object;
<b:loop values='data:labels' var='label'>
var theName = "<data:label.name/>";
ts[theName] = <data:label.count/>;
</b:loop>

for (t in ts){
if (!labelCount[ts[t]]){
labelCount[ts[t]] = new Array(ts[t])
}
}
var ta=cloudMin-1;
tz = labelCount.length - cloudMin;
lc2 = document.getElementById('labelCloud');
ul = document.createElement('ul');
ul.className = 'label-cloud';
for(var t in ts){
if(ts[t] < cloudMin){
continue;
}
for (var i=0;3 > i;i++) {
c[i]=s(minColor[i],maxColor[i],ts[t]-ta,tz)
}
var fs = s(minFontSize,maxFontSize,ts[t]-ta,tz);
li = document.createElement('li');
li.style.fontSize = fs+'px';
li.style.lineHeight = '1';
a = document.createElement('a');
a.title = ts[t]+' Posts in '+t;
a.style.color = 'rgb('+c[0]+','+c[1]+','+c[2]+')';
a.href = '/search/label/'+encodeURIComponent(t);
if (lcShowCount){
span = document.createElement('span');
span.innerHTML = '('+ts[t]+') ';
span.className = 'label-count';
a.appendChild(document.createTextNode(t));
li.appendChild(a);
li.appendChild(span);
}
else {
a.appendChild(document.createTextNode(t));
li.appendChild(a);
}
ul.appendChild(li);
abnk = document.createTextNode(' ');
ul.appendChild(abnk);
}
lc2.appendChild(ul);
</script>

<noscript>
<ul>
<b:loop values='data:labels' var='label'>
<li>
<b:if cond='data:blog.url == data:label.url'>
<data:label.name/>
<b:else/>
<a expr:href='data:label.url'><data:label.name/></a>
</b:if>
(<data:label.count/>)
</li>
</b:loop>
</ul>
</noscript>
<b:include name='quickedit'/>
</div>

</b:includable>
</b:widget>

Save the widget. Then try it out.

Thanks to phydeaux3. For more explanation, please read information here.