
Make sure you select the tube by hitting F1. You now want to extrude it to create the inside of the
glass. Click on the extrude tool and give it a length of 300.

Center up the right view so that you see the following in it.

You now want to make the top and bottom have sharp edges. Go into Edge Mode and select them like this;

Once you have done this go to Functions->Make->Make Sharp Edges. This gives it a smooth top and bottom.
You'll need to delete the bottom point of the outer glass. This will give your mug a bottom that is
indented like a normal beer mug. Go into point mode and select the point like this. And hit the delete key.

Now lets make the inside of the glass smaller. You should still be in point mode. We are going to want to scale just the bottom of it on
the Z axis. This keeps the lip of the mug even, and the bottom thicker.

Now we need to scale down the whole inner part on the X and Y axis. Deselect the Z axis once in scale mode.
You should still be in point mode.

Lets move the inner part of the glass back into the outer part. Select all the inner points and then move.
It should line up like this in the top view.

You will notice the center of the mug is still selected. We are now going to work on the outer part of the mug.
You are going to need to use the Pick Menu.

You will need to do a Pick->Hide Unpicked. This will cause
the outer part of the glass to disappear. We need it back so do a Pick->Reverse Hide. You should now
have the outer mug back. We are going to give it the "gear" like edge of a beer mug now. You will
need to do a Pick->Pick Range to bring up the requester and give it a step size of 2.

You should then scale them to get the gear like effect. Turn off the Z axis when scaling.

Once you have it looking like a gear, go into edge mode and select everything on the screen at this point.
Make them Sharp Edges. This will give the shape of the mug some definition. After doing that select
the taper tool and give it a slight taper.

You can now do a quick render to see what your mug should look like. Is it close to this....

Come back later for the handle and texturing of the object!