Hei!
I am relatively new to meditation but I also want to share some of my thoughts about becoming this 'observer'.
I first heard about the 'observer' from Dr. Wayne Dyer's audiobooks (which I have got plenty!) and then from Deepak Chopra's videos on Youtube (which I also recommend).
At first I did not get exactly what the 'observer' was, but a couple of weeks ago I happened to get interested in meditation and decided to download Jon Kabat-Zinn's audio on Mindfulness Meditation. There Jon talked about the true purpose of meditation - to wake up - and I was fascinated by that thought.
It was not until after I followed the guided meditation by Jon that I realised how self-centered I had been for the majority of my life. Sure, there had been moment in my life where I happened to 'wake up', but those moments seemed very odd to me since I did not know exactly why they happened and what they were.
Well, now I know. Those were the moments where I saw everything as it was: without labelling, without judging. Just by observing. And I am pleased to say that the last 3 schooldays have passed by by mostly observing others, instead of thinking self-destructive thoughts.
Oh, and I have been managing to be the observer by constantly observing my breathing and trying to make it as deep as possible. And what more is that whenever I get too 'inward' (or so to speak), I just say to myself in my mind: "Quiet mind". I got that 'hint' from a previous meditation I had listened to a few weeks ago and it has helped me a great deal.
So, sense your breath, breathe deeply, quiet your mind and start observing
All the best,
Arkazor