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>>(This is where I have the question. Do you mix all the ingredients together on Day 1, and then just stir it twice on Day One and Day 2, OR do you add half the sugar, molasses and ginger to the water on Day One, and add the other half on Day 2?]<<

Day one

2 cups of water
2 Tbs sugar
1 tsp molasses
2 Tbs of grated ginger

Day 2

Add
2 Tbls sugar
1 teas molasses (only a couple of drops is necessary)
2 Tbls grated ginger

Day 3 etc

2 Tbls sugar
1 teas molasses (only a couple of drops is necessary)
2 Tbls grated ginger
I also add about a half cup of water each day after the 2nd day. If the jar gets to full take out some of the old ginger and perhaps some of the water.

When you take out the cup of water to make the batch of ginger ale keep some of the water for the next batch of bug.

The rest you had right. You will notice that when you first fill the bottles and put the caps on you can squeeze the bottles. After about two weeks you will notice that the bottles are really hard as there is lots of pressure inside.

BTW The molasses is necessary only if you use refined white sugar. After doing some research on batches that didn't turn out well I found out that the bacteria need the minerals left in un-refined sugar. I add those minerals back in with the molasses. If you use sugar that still has those in you don't need the molasses.