Using GUI, what's the procedure to create a cold wallet on an offline machine and subsequently set up its watch-only GUI counterpart on an online machine? I just wanna be sure that I don't screw up.
If you want to create an offline (i.e. cold) (paper) wallet, you can follow one of these guides:
https://www.reddit.com/r/Monero/comments/6b2od3/a_stepbystep_guide_for_cold_storage_and_offline/
https://www.reddit.com/r/Monero/comments/5limu9/taushet_usb_monero_cold_wallet_generator_release/
https://www.reddit.com/r/Monero/comments/48cgmd/an_extensive_guide_for_securely_generating_an/
If you want to use the GUI you likely need to make some tweaks to the guides, but those will be fairly trivial. In addition, if you get stuck somewhere and need help, feel free to PM me.
Thanks for the links. The concise procedure quoted by bitebits (from saddambitcoin) above seems to be fine though. The only hitch is that the GUI window does not scale properly within a netbook's (setting it up as the cold/offline device) 1024 x 600 screen resolution. The GUI window fills the screen but the "Advanced Options" buttons at the bottom are cut off and rendered inaccessible as the GUI window cannot be moved around nor does it allow scrolling (not able to sign a transaction file as a consequence). Has this been reported before? Any solution? Is this something that can be fixed in future releases?
Sounds like one of those edge case bugs. Could you open a new issue on Github with your issue, system specifications, and exact operating system?
https://github.com/monero-project/monero-core/issues
Hopefully one of the GUI devs will fix it for a future release