What are clouds?
Clouds are produced through condensation. The air rises, cools - and with the reducing temperature the air can hold less water vapour so condensation occurs. The condensation makes tiny drops (each m3 of air contains 100,000,000 droplets) of water or ice crystals which settle on dust particles - which form the droplets. Whether the droplets are ice or water depends on the height (and the temperature) of the cloud.
The water droplets (or ice crystals) then start sticking together - forming the clouds. Clouds are made up of either water droplets or ice droplets depending on the height and air temperature.