Letters of Rec and Ethics

I am currently applying for a fellowship to do non-profit through Princeton University through something called Project 55 (check it out at www.actbig.org). It's a fellowship where you work for a non-profit organization for a year after graduation in a field of interest to you. I am trying for education policy in Chicago Public Schools, so we'll see what happens.

Anyway, in order to apply for this business, you need to submit a transcript, an essay, the application, and two letters of recommendation. All of this is totally standard fare. The only problem I am currently having is as follows: one of my recommenders (my boss at work) told me to write myself a letter of rec, and that she would sign off on it. "Feel free to embellish as much as you want," she said, "because it's all true." It was a high compliment to receive from one's boss, yet I am still a bit perplexed. How does one go about doing something like this?

The fabulous Naomi said that it was totally ethical and something that people do all the time. This I don't doubt; no one wants to take the time to do anything that can't be delivered instantly via some form of technology. But how do I do this? I have no idea what to say. I asked her for some ideas, and she gave me standard fare: diligent, hard working, responsible, creative... I just feel like a massive tool even thinking about putting pen to paper (or hands to keys?) to write this. Suggestions?