I have just begun learning about cakes and am working with a wonderful lady, near my home town. I recently had a friend get engaged and she asked me to do her cake. So I was wondering what order should I go in, do I work on the design and all the fun stuff then do the tasting, or the other way around? Or do I do them at the same time? And how many flavors should I have ready for her to taste?

Tasting is always first, cause you may not be to their taste. But to go even "more" first. Find out about the legalties in you area about selling cakes. Also, figure out your pricing. You also may not in their budget.

I would do the tasting and the design all at the same time. I think 3 flavors would give her an idea. If those three taste good, I'm sure that your friend will understand that the rest of your cakes are just as good.