http://buzz.blogger.com/2008/08/show-off-your-followers.html
<<Would you like to know who enjoys reading your blog? Or stay updated with your favorite blogs right from your Blogger dashboard? You can do those things and more with Blogger’s new Following feature.
By following your blog, your readers tell you and the world that they’re a fan of what you post. Your Dashboard now shows you how many followers each of your blogs has. With a click on the Followers icon, you can browse your followers, see what blogs they write, and read the other blogs they’re following.>>
http://3.bp.blogspot.com/_kUCKpKeDd4E/SLYVDON-rYI/AAAAAAAADJM/HlByRZpQci4/s1600/manage_blogs.jpg

as usual

<<..Important Note: The Following feature will be rolled out to all over the next few weeks, so if you don’t see it right away, don’t worry. It’s coming soon. ..>

Google Reader functionality previously spotted here:
http://blogoscoped.com/forum/137067.html

I've got it, and it works really well. They say they are working on Google Friend Connect integration too.