DISCUSSION How do you create characters?

This is going to be somewhat of a multifaceted discussion, but this is good, because it'll offer greater insight into how this process works for a good number of us here at ZEJ, although it might be difficult for someone like @Ziolang to answer with any degree of certainty. On to the main topic, though!

I've always been curious about the processes that go on behind the scenes when we create characters. I say this because, in many ways, a roleplay or fiction character is a reflection of part of its creator. I wonder what side of us is most present in our "biggest" characters, for those participating in the Manaverse project, and how they get their attitudes directly from us as players. What makes them (and therefore us, in varying ways) tick?

Additionally, how do you handle recurring characters, if you use them? Do you even use recurring or persistent characters? Feel free to answer this by voting in the poll, posting in the thread, or both.