Step 1: Stuff you will need
2. Diamond crown drill bit (12mm or 1/2" in this case)
3. 20 white LED light string
6. Rag (optional)
Total price in my case - approx 10$ (raised this drill from the dead).
All of the stuff listed is for what I've tried. You may want to experiment with using:
A spade drill bit instead of diamond crown (I don't like spade bits).
A LED string with more or less lights (20 look just right though)
Something else instead of bottle (I'd love to see examples)
Running water instead of bowl filled with it (risky, rag is a must for this one)
As for the color of bottle, Ill post some examples later in this instructable, but I like those dark brown ones the best, since the glow is very nice and warm, when on, and you can't see much through, when off.
Side note: Since it is possible that LEDs are of different size it's possible, that you will need a drill bit that is smaller or bigger (most likely). When measuring, take into account, that it is the LED and two cables that should fit through the hole! For my 12mm drill a 9mm (0.35") (at widest point) LED with 2.5mm (0.1") cables fit just right.