Wordpress blogs in subdomain..

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Iam creating a WP custom theme website, where customer is askign for displaying blogs alone in sub domain part. Is it possible to do . could you help me with guidelines , plugins or any reference links ?

Example - complete website in www.xyz.com , blogs part alone in www,blogs.xyz.com ,

Should we install the WP copy in subdomains or can we manage from 1 WP cms intself ?

Thanks !
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