What is cheap? $100, $1000, $10000? people have different perspectives of "cheap".
You really haven't explained what your recording goals are yet. Demo cd's? produce an album? just messing around?
Is it going to be.....
- just you?
- guitar? electric and acoustic??
- a 5 pc band?
- are you going to be doing whole songs with drums, keys, etc.
- vocals?
Do you have a fairly high performance desktop pc? depending on your goals, you may need a new one to do quality recordings.
Stage mics will work but usually are not as good as large diaphragm condensers, small diaphragm condensers, ribbon mics, etc.
Need good mic preamps. a few audio interfaces have decent preamps, most do not. Your end result will only be as good as your weakest link in the recording chain.
Going to need good recording software. learning curve is steep.
You need to do your own research also, there are some pretty helpful websites out there. For me, Sound On Sound has always been a go to place for quality information.
http://www.soundonsound.com/
And Tweakheadz has this section on home recording rigs....
http://www.tweakheadz.com/rigs.htm