Answer: Offsets appear at the base of the plant. When the offset is several months old remove it with some roots attached and plant it in a well-drained planting medium--the best medium is the type made specially for orchids. Do not plant it too deeply, and keep it warm until it is well established. The mother plant will continue to live, anywhere from a few months to a year or more. You can remove the flower stalk after flowering; since the mother plant won't flower again, you can either keep it for its foliage, or discard it and nurture its "children".
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