Sanitize a couple of bottles, say, 4-6 12 oz, or 3 16 oz.
Rack as much beer of of the yeast as you feel you need to (some of us like it cloudy).
Then mix the remains up a bit. Pour as much as you can into the bottles. Be careful when using a (sanitized) funnel as they tend to overfill the bottle if you are not paying attention because the funnel will fill up after the bottle is full which will create a spill-over. I usually fill 2-3 bottles a bit past 1/2 way and then try to fill them equally. Place the foil (see preivous posts) on top and refridgerate. Don't forget to label each bottle.
The next day you will notice all the solids have dropped to the bottom and there is a layer of beer on top of the yeast. Some people will pitch it or pour it into a glass and drink (that's me - I sample a bit at every stage).
After a day or two you can cap them. Take one out a day before brewing to warm up to room temp. Be sure to break the seal on the cap and place another piece of foil over it or an airlock. Sterilize water/malt - boil for 5 minutes. Use a cotton ball or Q-Tip dipped in some vodka and sanitize the lip of the bottle with the yeast. Pour the malt (after it cools to the 70s) and yeast into a larger (sanitized) container (1/2 gal apple juice jug works fine) as a starter.
It'll be ready to use the next day.
You should switch to liquid yeast. Dry yeast mutates faster.
You don't need the dry yeast that came with the kit. Unless it is a specific yeast strain for a specific style of beer, save the dry stuff for emergencies.