Make sure cut end is well callused (it is already starting). When all dry, pot it into a well draining mix, in a pot/container with drainage hole. You could make your own mix by getting bag of Cactus&Succulent soil, and a bag of perlite. Sift perlite using kitchen strainer to get rid of dust and small particles (do not breathe the dust), or at least rinsing it in the sieve. Mix soil and perlite 50-50, or could be more perlite. Mix well and use to plant your cutting. It may need some support at the beginning, you could use few large rocks or tie it. As roots start growing, it will anchor itself. Do not water after potting for a while since there are no roots to take water in. You should see some new growth starting, and that usually means some roots have started growing too. Start to water after that - it could be a while, depending on your growing conditions.

Do I plant the callused end into the mixture? Maybe up to that little root looking thing? And then water in real good the first time them no water till dryed out?

Yes, callused end. Make sure it is all dried up, there is lots of flesh so it may take a while. When taking cuttings, it is better to make cut very close to the 'collar' so it will callus up faster. Not a big problem, it will just take bit longer. You could leave it sitting there - not in full sun -, unpoted, for quite a while. Here is a big cutting I took on Feb. 27; I also left long cut because it was cut off the main stem. It is ready to pot now (this pic is taken March 4):

No, no water at all until roots started to grow. You could pot up to that air root, it probably will grow into the mix. If not, that's no problem.