As of version 2.73 from 2015:

- Make sure render engine is set to cycles (BI wouldn't create the required cycles materials)
- Select the object you want to emit smoke
- From the menu *Object/Quick Effects* pick *Quick Smoke*

After that a material has been created that looks like:

![enter image description here][1]

In order to also emit flames it can easily extended:

![enter image description here][2]


Important settings for the Domain object (besides higher-resolution):

![enter image description here][3]

Important settings for the *Flow Object*:

Add a procedural texture and animate some properties to animate the flames

![enter image description here][4]

Full tutorial: http://www.blenderguru.com/tutorials/make-fire-cycles/


 [1]: https://i.sstatic.net/ZW5dK.png
 [2]: https://i.sstatic.net/bCIzA.png
 [3]: https://i.sstatic.net/I2HCd.png
 [4]: https://i.sstatic.net/WD4Cm.png