I finally was able to clone my sim, twice. All that is required is to level up, and to do a special upgrade to the cloning machine. Once completed, there will be an option on the cloning machine to clone who ever is on the lot. Here is a picture of my clones. Oh yes, evil clones have red eyes.
The orginal sim and her clone playing a special game.
https://scontent-dfw1-1.xx.fbcdn.net/hphotos-xft1/l/t31.0-8/11823021_499373796879587_7401598569048458643_o.jpg
I had her make a second clone, who turned out evil. Her eyes are red.
https://scontent-dfw1-1.xx.fbcdn.net/hphotos-xfl1/t31.0-8/11728702_499410190209281_582870195639454750_o.jpg
My sim and her good clone.
https://scontent-dfw1-1.xx.fbcdn.net/hphotos-xpt1/t31.0-8/11850503_499373886879578_2585592178964295803_o.jpg
Just a side note, any clones you create will be added to the household.