1. Create new template in System -> Transactional Emails -> [Add New Template]
2. Select [Template] to edit
3. [Template Name]: Unique name to identify template
4. [Template Subject]: The subject of the email
Variables for Subject:
Customer Name: {{var customer.name}}
Order No.: {{var order.increment_id}}
Store Name: {{var store.getFrontendName()}}
Shipping No.: {{var shipment.increment_id}}
5. [Template Content]: Easier to grab existing template to modify in (app/locale/en_US/template/email)
6. [Save]
7. Change Customer Email in System->Customer Configuration
8. Change Orders/Shipping Email in System->Sales Emails