Just go ahead and create a links list on your blog. Freely link to any blogs that you fing interesting, informative, and helpful to your readers. Think of the needs of your readership first, and you won't go too far wrong.
Many bloggers (although not all) will gladly link back to your blog, as most bloggers want to receive as many incoming links as possible. No one will complain if you link permanently to their blog.
The best format for linking is as a clean html link like this:
<a href="http://www.linkedtoblog.com/">Linked To Blog</a>
Place the links on the edge of your blog for easy discovery by your readers and away you go!
That's the links question answered.