First step: Memorize huge reams of substantive law in all of the tested subjects: Civil Procedure, Constitutional Law, Contracts, Criminal Law and Procedure, Evidence, Real Property, and Torts. If you don't know this information backwards and forwards, nothing else matters.
Next step: Work through thousands of practice multiple choice questions, many of which have appeared on previous MBEs. This is when you use your powers of analysis to spot the issue and apply your memorized knowledge to come to the correct answer. Pay attention to the explanations as to why every answer was right or wrong. Even if you answer correctly, read the explanations.
Practically speaking, these steps are interwoven. You have to have a good amount of memorization done going in, but then you learn more law as you answer the questions. One big mistake would be to wait until you thought you had memorized everything before starting to answer practice questions. If you waited until then, you would never get around to the practice questions at all. You will memorize more as you answer the questions.
