Navigate a list of posts in sidebar

Hey guys

WordPress, is a very very powerful tool and I am loving using it. These support forums are great, and the reason i post now is because I cant find the answer anywhere!

If you go to the site Mumford and Sons and select News… you can see a list “Latest News” in the sidebar. I have used lots of different widgets and can list X number of posts from a single category in the sidebar, but what I can not do is find a way to add the “1,2,3,4,5…More” section below where you can view all the posts in category but in blocks, i.e. 1 shows Posts 1-5, 2 shows posts 6-10

Does anyone have any idea of how to recreate this? Any help would be greatly appreciated,

Thank you

Charlie