To achieve this do the following:
- Go into the layout mode of your Blogger blog and select "Edit HTML."
- Scroll down to the bottom where the header widget code resides (or do a browser Find text "maxwidgets").
- Change "maxwidgets=1" to "maxwidgets=2"
- Change "showaddedelement='no'" to "showaddedelement='yes'"
- Lastly, change "locked=true" to "locked=false"
- Return to Layout and look at the Page Elements. Notice "Add a Gadget" is now available above the Header.