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The Featured Posts widget will know to display the post image as long as you select that option in the widget interface.
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It is using the Genesis - Featured Posts widget to display what you see on the Serenity child theme demo site.
To get started, log into your Word Press dashboard, and then go to the Appearance Widgets screen.
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There you can drag the Genesis - Featured Posts widget into the Featured Top Right widget area on the right hand side.
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