To do this, I went to the Layout, and I chose Add a Gadget in my sidebar column. Then I chose the "Featured Post" gadget by clicking on the plus sign:
Then I picked a title for the gadget and I selected my latest story post. It looks good in the preview, so I hit save.
Check out the sidebar: it works! Now I can edit the gadget to update it every time I publish a new story.
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