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Bill's recipe

1. Install pip if you haven't already:

curl https://bootstrap.pypa.io/get-pip.py -o - | sudo -H python

2. Install the new iPython:

sudo -H pip install --upgrade ipython[all]

3. Start it up:

ipython notebook

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Will's recipe

Also with pip:

pip install pyzmq jinja2 tornado mistune jsonschema pygments terminado

ipython notebook

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Chris's method 

sudo easy_install --upgrade ipython

ipython notebook

And then, when the above results in complaints, upon launch or upon
trying to open or save a notebook file, use easy_install to install
all of the dependencies that easy_install failed to take care of
(which iPython lets you know about reliably).