Add Google Custom Search (CSE) in SNEWS theme for blogger blog by following steps, but remember the only Overlay layout of Google custom search will work in snews theme. Below is the screen shot of layout option in which you will choose Overlay type.
1. Goto Google Custom Search Engine and create your engine with Overlay layout and get the engine id from Setup option as shown in below image.
2. Then goto Layout section in blogger and choose Change Default Settings option from the header section and type cseid in New Site Name field and add your cse id in New Site URL field as shown in below image.
Save it and it will work.