Update capabilities documentation with recommended best practices (#1066)

Co-authored-by: codegen-sh[bot] <131295404+codegen-sh[bot]@users.noreply.github.com>

Author: codegen-sh[bot]

docs/gen/capabilities.mdx

@@ -64,4 +64,39 @@ Codegen's brain (powered by Claude 3.7 Sonnet) intelligently selects and combine
 3. Execute the necessary actions across GitHub, Linear, and your codebase
 4. Provide clear, helpful responses back in Slack
 
-This seamless integration allows you to manage your entire development workflow through simple conversations, without having to switch between different platforms and interfaces.
+This seamless integration allows you to manage your entire development workflow through simple conversations, without having to switch between different platforms and interfaces.
+
+## Recommended Best Practices for Using Codegen
+
+Here are some recommended best practices for integrating Codegen effectively into your development workflow:
+
+### Workflow Integration
+
+- **Small bug fixes**: For minor issues, consider using Codegen for instant fixes and merges
+- **Larger tickets**: A multi-step approach often works best:
+  1. Ask Codegen to do a first pass on the implementation
+  2. Check out the branch and review the changes
+  3. Add any necessary adjustments
+  4. QA the changes
+  5. Merge the code
+
+### When to Use Codegen vs. IDE
+
+Consider using Codegen for:
+- Initial exploration and first pass on tickets and engineering efforts
+- Quickly gathering context on issues (e.g., explaining errors in notification threads)
+- Understanding the "blast radius" of a given change to assess its impact
+- Getting a solid first pass at approximately 80% of your work
+
+Use your preferred IDE (like Cursor or VS Code) for:
+- Making precise adjustments after Codegen's first pass
+- Detailed work that requires deep context
+
+### Effectiveness Tips
+
+- Be diligent about analyzing tasks and determining how to break them down for Codegen
+- Split complex tasks into manageable chunks
+- Don't hesitate to discard unhelpful outputs and try a different approach
+- View Codegen as a powerful assistant rather than an infallible oracle
+
+These practices can help you leverage Codegen effectively while maintaining high code quality and productivity.