Cigar 101 - How to Light a Cigar*
After being cut, the cigar is now ready for lighting. Butane lighters or wooden matches are recommended. It is important not to introduce chemicals or other flavors or substances into the cigar as it is being lit (never use a scented candle). There are many types of lighters on the market, but butane torch lighters work the best outdoors, especially on a breezy day.
Puff and Rotate
Light your lighter with one hand, then grip your cigar around the band (or about an inch or two from the head) using your thumb, index finger, middle finger, and ring finger (if necessary), and place in your mouth. Position the end of your cigar just above the top of the flame, being careful not to let the cigar actually touch the flame. Begin puffing on the cigar, and then slowly begin to rotate the cigar while continuing to puff.
Depending on the size of the cigar, you may have to continue puffing while rotating the open end above the flame for at least 10 to 20 seconds (sometimes longer,) until the tobacco around the outer rim begins to glow, and the smoke begins to easily draw.
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*Article from cigar.about.com