Normally, we use RAYTRACE REFLECTION to reflect objects. But if you’d like to blur the reflection we use REFLECTION and REFLECT/REFRACT (It’s just under the normally raytrace selection).
To blur, make sure the Blur option in Reflect/Refract Parameters is ticked.
This is with the material just applied to the object.
PLEASE NOTE: I’VE ADDED A CHECKERED BACKGROUND MAP TO EXPLAIN THIS TUTORIAL.
Changing the Blur amount and offset until you’re happy with the final outcome. It’s a very simplified explanation, but hopefully this helps! – I rummaged the web looking for something similar to send to a friend, found nothing so just posted about it myself.