I just want to know all the necessary steps into making my picture into a Mugen stage it doesn't have to be the best but I want to play on it for my own entertainment, and if you could help me I would be dearly thankful for your kindness and helpfulness. I may ask a few questions along the way since im all new to this.

The best advice i can suggest is start off with some self study, then ask questions later to fill in the gaps for after some trial and error.
If you are new to mugen creation and aspire to learn and be good at it, the best first lesson to learn that I did, as did many other older creators also learnr, is that mugen is a lonely mans game, and the best help comes from self help and just reading guides, googling tutorials, looking up youtube how to guides, and practicing from that.
Mugen is hard work and takes alot of time and patience and some answers we have to search out on our own.

Of course there is 1000 types of advice for you but it wont be so helpful for you if you dont know the basic things first.
You should read some tutorials and google some videos and watch them first and practice so you learn how mugen tools and fighter factory and stuff work.
Or else you will get stuck on many many basic things and have to wait for answer to question everytime.
Look up a guy his name Ryon on Youtube he make many useful beginner stage tutorial and stuff.

Then practice and come back and ask for questions things you still not sure