Masnoon Method of Sacrifice

It is more virtuous to slaughter the animal with one's own hands. If one does not know how to slaughter, it is preferred that he remain present while someone else is sacrificing the animal. It is not necessary to make the niyyah (intention) of Qurbaani with the tongue, however it is necessary to say Bismillahi Allahu Akbar when slaughtering.

1. When the animal is laid down facing the qiblah, it is Sunnah to recite:
2. 
   Lo! I have turned my face towards Him Who created the heavens and the earth, as one by nature upright, and I am not of the idolaters. Lo! my Salaat and Sacrifice, and my living and my dying are for Allah, Lord of the worlds. He has no partner. This I am commanded and I am first of those who Surrender (unto him ). O Allah! (This Sacrifice) is from You and for You.
3. Then saying Bismillahi Allahu Akbar cut the throat of the animal. The gullet, windpipe and the two jugular veins should be cut. Cutting any three of the four will also suffice. If only two are cut, the animal will not be lawful for consumption.
4. After slaughtering the animal, read the following du'aa if possible:
5. 
   O Allah! accept (this Sacrifice ) from me in the Same manner as You have accepted from Your beloved Muhammad and Your friend Ibraaheem alayhis Salaam. Peace and blessings be upon them.

Mas'alah: It is not necessary to recite the aforementioned du'aa. To slaughter the animal with the niyyah of Qurbaani, saying Bismillahi Allahu Akbar will suffice.
Mas'alah: Use a sharp knife and slaughter the animal quickly so that it does not suffer.
Mas'alah: Do not sharpen the knife in front of the animal.
Mas'alah: After slaughtering, do not skin the animal before it becomes completely cold.
Mas'alah: Do not slaughter one animal in the presence of another.
Mas'alah: It is Mustahab (desirable) for one who intends to perform Qurbaani to refrain from cutting hair or clipping nails from 1st Zil Hijjah to 10th Zil Hijjah, (i.e. until after Qurbaani).

The Qurbaani meat and skin