How to Customizing iterm2 with ZSH and Powerline Fonts

Download iTerm2 and install it.
Install ZSH with terminal, ex: sh -c "$(curl -fsSL https://raw.github.com/ohmyzsh/ohmyzsh/master/tools/install.sh)"
Download Cobalt2 and drop the cobalt2.zsh-theme file in to the open ~/.oh-my-zsh/themes/ directory.
Open up your ZSH preferences at open ~/.zshrc and change the theme variable to ZSH_THEME=cobalt2.
Install Powerline and necessary fonts, one way is using PIP.

For first time PIP users you need to install PIP sudo easy_install pip

To install Powerline using pip

pip install --user powerline-status

Now install all necessary fonts by downloading or cloning git repository.

git clone https://github.com/powerline/fonts
cd fonts
./install.sh

In iTerm2 access the Preferences pane on the Profiles tab.
Under the Colors tab import the cobalt2.itermcolors file via the Load Presets drop-down.
Under the Text tab change the font for each type (Regular and Non-ASCII) to ‘Inconsolata for Powerline‘. (Refer to the powerline-fonts repo for help on font installation.)
Refresh ZSH by typing source ~/.zshrc on the command line.