How to jailbreak iPod Touch that is running iOS 7.0.6, 7.0.4, 7.0.2 and other 7 versions. You must note that if you previously updated your iPod Touch via OTA option i.e. Settings => General => Software Update, then you might be going to face the problem during evasi0n7 jailbreak on iPod Touch because the latest version of jailbreak requires that you must have upgraded your iPod Touch using iTunes.
How To Upgrade iPod Touch For iOS 7.0.4 & 7.0.6 Jailbreak
First of all download latest ios version of firmware for iPod Touch from here, after you download ios 7.0.6 firmware you have to connect your iPod Touch to your computer
=> Run iTunes
=> Make backup
=> After backup is complete press and hold shift (Option in Mac) button and click Restore button
=> iTunes will ask to select the firmware file
=> Select the downloaded file and click open
Let restore process complete and setup as a fresh device, you can also restore from backup.
How To Jailbreak iPod Touch 7.0.4 / 7.0.6/ iOS 7
Step 1: Download evasi0n latest version from evasi0n.com or from below links and Extract the file on your desktop.
Step 2: Run the evasi0n7.exe file as administrator by right clicking and selecting Run As Administrator.
Step 3: Connect your iPod Touch to the computer. Evasi0n will show a message that your iPod Touch is compatible to jailbreak with 7.0.6 with current version and will also show build of your device. Now click Jailbreak button and let the steps complete.
Step 4: After a while evasi0n will show a message that unlock your iPod Touch screen and tap a new Jailbreak icon. Just follow it and let the process complete after tapping new icon.
Step 5: After few reboots your iPod Touch is ready with Cydia installed now just tap new Cydia icon and select to use as User . On first run it will take some time to load initialization files and now you can search and install Cydia tweaks, themes and backgrounds etc on your jailbroken iPod Touch as you wish.
Now you will need to install different Cydia Tweaks which you can check from our Cydia section, this was the complete step wise guide on how to jailbreak iOS 7.0.6 on iPod Touch.