I read somewhere in the help section about this “Generate” button but I cannot find it anywhere. Anyone know about this? 
If you are using the lite version of the program you will not have the option to import an image.
With the full version, you can import a bitmap into a glyph (from the tools menu) and generate contours from the image (autotrace it to convert the bitmap to a vector). This saves a lot of drawing, since you can scan your handwriting and convert each character to a glyph to make a complete font.