A Custom Search Engine (CSE) is a tailored search experience, built using Google’s core search technology, which prioritizes or restricts search results based on websites and pages that you specify, and which can be tailored to reflect your point of view or area of expertise. The Google CSE allows anyone with a valid google account to form a search engine specific to their needs in a few minutes.
Harness the power of Google search to create a free Custom Search Engine that reflects your knowledge and interests. Specify the websites that you want searched – and integrate the search box and results into your own website.
Once you get done with the quick registration process, all you need to do it provide a suitable name for your very one search engine, a description and may be a logo too 
. Thats not it, you can personalize the results too. Provide the sites to be searched from, or if you still want the whole world wide web then there is an option for laying emphasis on your specified sites along with the general websites.
Simply submit websites or pages you’d like to include in your search engine index. You can choose either to restrict your search results to include only these pages and sites, or simply to give these pages and sites higher priority and ranking in the larger Google index. Once you’ve defined your search engine index, Google will give you a simple piece of code for a search box to place on your site or blog. You’ll then have the option to choose various customization options to make the look and feel and functionality of your search engine your own. Best part you can with the help of small code publish the search engine results in your site itself
With a Custom Search Engine you can:
- Apply your website’s look and feel to the search results page.
- Make money from your Custom Search Engine by participating in Google’s AdSense program.
- Provide search refinements within results pages to make it easier for searchers to find the information they’re looking for.
- Incrementally add sites to your search engine’s index as you surf the web.
- Invite friends and trusted users to co-edit and contribute to your search engine.
The Custom Search Engine is built on the Google Co-op platform, the goal of which is to enable people to build upon, customize and tailor Google Web Search.
Best part about this whole service is they also give you a google marker tool bar which you can use on the fly to include or exclude 1) a page 2) a site that you are browsing at that moment.
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very good piece of information.