If you’re making a booklet in InDesign, then you’re already on the right track. Don’t worry about rearranging your pages so that they print in the correct order when folded, instead, make your document in normal sequential order (1, 2, 3, etc) and then follow the directions below to print it in booklet format.
This is my six page booklet.
If you’re printing directly from InDesign, simply navigate down to “Print Booklet” in the File menu.
This is the visual difference between saddle stitch and perfect bound (thanks to Clear Print!):
Navigate to the Preview panel, and select Print Settings.
Now you can turn on double-sided printing.
Make sure you have short-edge binding selected as well!
This is your end result:
Go forth, booklet makers!