What it teaches
The four steps and what each one is: water turning into a gas and rising, turning back into droplets where it is cold, falling, and gathering to go round again.
Every example is something a child has seen — a puddle drying, a kettle, a misted window, drops on a cold glass. The misted window is the one that does the work: it is exactly a cloud, happening indoors, at eye level.
What to look for
The drops on a cold glass are worth an argument. Most children — and plenty of adults — think the water came through the glass. It came out of the air.
A saucer of water on a windowsill disappears in a few days, and a child who has watched that never needs the diagram.