How can I provide email subscription to my blog readers. Like we have in MakeUseOf: “Enter your mail ID here to subscribe”.
Are you talking about the way MakeUseOf displays a box for users to subscribe to the newsletter? I think that is possible due to a WordPress plugin, but I could be wrong here.
MakeUseOf uses Aweber, http://www.aweber.com.
If you're serious about growing your list I highly recommend Aweber.
I would do the exact thing that Steve has mentioned.
With Feedburner, subscribers will get an email about new posts that you publish, and MailChimp.com is similar to what MakeUseOf users which allows you to write your own email newsletter and send it to your subscribers. MailChimp's free account let's you have 500 subscribers and allows you to send out 3000 emails per month.
If you just want them to be able to get email updates of your latest posts, you can set it up in Feedburner. If you are looking at creating a free email newsletter, I recommend you look into Mail Chimp.