At the beginning I was struggling while setup and running a Android Lollipop emulator. So I thought putting all the steps into one place and sharing it in a simpler manner.
This was fully tested in Windows 7 (64 bit) environment with Eclipse JUNO Version: 4.2.1.
1. Please make sure that you have the latest Android SDK Tools and Android SDK Platform-tools. If not please update them to the latest version.
2. Install necessary components of Android 5.0(API21). For the moment, I didn’t install the components related to Android TV.
3. Make sure that you have installed Android SDK Build-tools -> Rev. 21.
3. Make sure that you have the latest component of Android Support Library & Google Play services.
4. You must install Intel x86 Emulator Accelerator(HAXM installer). Don’t use the Android SDK Manager for installing that.
Because at the moment the SDK Manager gives you HAMX installer version 1.1.0. But to build up Android Lollipop emulator, it requires the latest version of HAMX which is 1.1.1. This can be found in the following link Intel x86 Emulator Accelerator(HAMX installer)
5. Next go and build the Android Lollipop emulator.
6. I have selected Nexus 5 as the device.
7. When you are creating the Android Lollipop emulator(AVD) make sure to select Android 5.0-API Level 21 as the Target.
If you select Google APIs – API Level 21, you might get a warning even if you have installed Google APIs Intel Atom(x86) system image.
8. For CPU/ABI, I have chosen Google APIs Intel Atom(x86_64).
9. Make sure that you have selected Use Host GPU option rather than Snapshot in Emulation Options. Otherwise when the emulator starts you will see nothing but a black blank screen only.
Finally you are ready to go. Start your newly created Android Lollipop emulator(AVD) from the AVD list.