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You can wait for update notification on your phone or simply update it manually. Instructions Below.
- Download the update from Google Servers
- Rename the file to Update.Zip
- Place the in the root of your SD Card
- Switch Off your Nexus S
- Reboot into the bootloader by holding volume up and power on
- Select Recovery [Use the volume buttons to choose “recovery” from the list, and select it with the power button]
- When you see the triangle on your screen, press volume up and power once more and you’ll have a list of options, choose to update
