How to write text in jupyter / ipython notebook?

Here is an example of IPython notebook in which besides the input and output cells we have a plain text. How can I do the same in my IPython notebook? At the moment I have inly In and Out cells.

Change the cell type to Markdown in the menu bar, from Code to Markdown. Currently in Notebook 4.x, the keyboard shortcut for such an action is: Esc (for command mode), then m (for markdown).

As it is written in the documentation you have to change the cell type to a markdown.

Simply Enter Esc and type m it will convert to text cell.

Step 1: Click on the '+' to create a new cell, type some text in, and select 'Markdown' in the dropdown

Step 2: It should now look like this:

Step 3: Click anywhere in the cell and click on 'Run'. Now it looks how you expect it to.

Adding to Matt's answer above (as I don't have comment privileges yet), one mouse-free workflow would be:

Esc then m then Enter so that you gain focus again and can start typing.

Without the last Enter you would still be in Escape mode and would otherwise have to use your mouse to activate text input in the cell.

Another way would be to add a new cell, type out your markdown in "Code" mode and then change to markdown once you're done typing everything you need, thus obviating the need to refocus.

You can then move on to your next cells. :)