First, Create AMI from instance you wish to build template version from and copy its ID to clipboard
Then...
EC2 -> Instances -> Launch Templates
Click template you wish to update
Actions (upper right) -> Modify template (Create new version)
Set Template Version Description eg "CMS-Webserve-Feb-27-2020"
Select source template (eg whatever is currently "default")
Specify AMI (paste ID from clipboard)
Click Create
Go back into EC2 -> Instances -> Launch Templates
Click "Versions" tab
Click latest version number -> Actions -> Set Default
IMPORTANT: ALWAYS TEST!!! Go to Auto Scaling groups and demote/scale in a new instance to an unsubstantial group.
Make sure EVERYTHING works as expected!
Done!
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