In iOS 5, the Genius icon appears at the top of the screen to the right of the name of the song that is currently playing.
Tapping on the Genius icon creates a playlist. Unfortunately, there is not a confirmation that your playlist has been created but if you tap on “Playlists” at the bottom of the screen you will see the newly created playlist.
You then need to tap on the playlist you just created and it will show all of the songs in the playlist. You can then save the playlist if you like the songs that are in the Genius playlist or you can tap Refresh to change the songs in the playlist.
After a Genius playlist has been saved it can be edited by tapping Edit and changing the order of songs or deleting songs form the playlist.
You can also create your own playlist by tapping on Playlists at the bottom of the screen then tap New on the top right of the screen. You can then name your playlist and add songs to the playlist from any of the music on your iPad.
The next time you sync your iPad the new playlists will be saved to iTunes and they can also be synced to other iOS devices.