The basic process is this:
1) Read a book and take notes or highlight or underline.
2) In my adaptation, add the author and book title in the field on the front page (HQ). This will speed things up in the next step.
3) Go back through the book and create a note for each thing you want to keep track of. The authortitle field will already be populated with what you put in the field in step 2. Add page # and the two levels of topics the note naturally falls under (e.g., Diabetes, and Diabetes diet tips). In the text field, replace 'Entry' with the actual note. Done, unless you want to replace the datetime stamp with a title, which is optional.
4) If you don't currently have a tiddler for the data in your 'topic1' field, click the green menu button and create one. Just paste your title (ie, Diabetes) and save. If you want to have an even higher level of topics, called domains (in this case, Health), then use tagging to add a third level. The note you created on diabetes should appear in the Diabetes tiddler under the heading 'Diabetes diet tips'. The author, title and page number appear in gray text after the note itself. And the blue diamond that acts as a bullet also is a link to the note tiddler, in case you have to edit it.
5) So as you add notes you are also indexing your notes by topic and subtopic (and domains if you like).
6) When you need to review notes, you can search in the list of topics on the front page and open the one you want. If you used tags, there is a link to a list of tags, too.
I did this because I want to index my books, using short blurbs that refer to the contents of a section in a book, like 'Chart of basic food groups' or 'Great quote on friendship' or 'Nice definition of chiasm'. Since I doubt it will scale, I intend to use several files, depending on the topic of the book.
It is not meant for pasting quotes from books and other sources. I have a different adaptation for that, which I call GiffMarks.
http://giffmex.org/giffmarks.html. That is a bit more sophisticated than this Simple Note Index. It creates the lists of quotes by topic, but also creates lists of links to topics within the tiddlers for each book or source.
You might wonder why I bothered creating the Simple index if I already had GiffMarks. The Simple index lets me add the other data BEFORE I think of the topic and subtopic. It is easier on the mind. Whereas Giffmarks requires thinking through the topic first, then adding the data. I like both systems, but I have to be in different moods to do them. Simple index is for rapid indexing of books I have already finished, which is easier for physical books. Giffmarks is for leisurely adding great quotes from good books as I read, on electronic books that allow me to copy and paste.
Hope that helps. I may just go and cut and paste some of the above into the instructions tiddler. Thanks for drawing it out of me! Blessings.