1. Go to 'Tools' in the menu bar

2. Click on 'Options'

3. Click on 'Privacy Tab'

4. Disable the box that says 'Accept Cookies From sites'

 

To clear existing cookies:

 

1. Go to 'Tools' in the menu bar

2. Click on 'Options'

3. Click on 'Privacy Tab'

4. Click on "Clear Now"

5. Select "Cookies"

6. Click on "Clear Private Data Now"

 

This procedure will stop sites from installing cookies on your Firefox browser. 

 

You can specify your cookie options under Firefox 8.0 by selecting Tools -> Options -> Privacy. 

On the Privacy box, you can disallows websites from tracking you by checking on the “Tell web site I do not want to be tracked” under Tracking. But even if you are tracked, you can go to the linked “remove individual cooker” which opens up a new dialog box containing the websites and their respective cookie files saved by the browser. You can individually delete the cookies, search for specific cookie or just delete all of them with one click.