Using .htaccess for favicon (.ico)
Add the following line to your .htaccess file
AddType image/x-icon .ico
RewriteRule ^favicon.ico favicon.ico [NC,L]
Make sure favicon.ico is placed same level as this .htaccess file and not any other sub-folders. To create an icon for your website from your image file, you may use the free tool provided here :http://tools.dynamicdrive.com/favicon/