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Determine desired height for windows and snap a chalk line (Image 1). Cut along chalk lines using a circular saw with a carbide-tipped blade (Image 2). Remove drywall, plaster and lath to reveal the studs (Image 3). If you find old knob and tube wiring in the wall, test it to be sure it is not in use (Image 4). Clip the wires and cap them with wire nuts.
Use a reciprocating saw to cut through the siding and create the opening (Image 1). Add blocks of wood to the top, bottom and sides to act as nailing blocks (Image 2).
Staple tar paper on the exterior of the house around the window opening.