update README

README.md

@@ -16,12 +16,14 @@ A prompt engineer's ***Grimoire*** to assist with getting the best results from
 To install Grimoire, follow these steps:
 
 1. Clone the repository and navigate to the directory:
+
 ```sh
 git clone https://github.com/gphorvath/grimoire.git
 cd grimoire
 ```
 
-2. Build and install using Make:
+1. Build and install using Make:
+
 ```sh
 # Build the binary
 make build
@@ -31,6 +33,7 @@ make install
 ```
 
 This will:
+
 - Build the Grimoire binary
 - Create the ~/.grimoire directory
 - Copy default prompts to ~/.grimoire/prompts
@@ -50,14 +53,37 @@ grimoire copy <prompt-name>
 # Create a new prompt
 grimoire new <prompt-name>
 
-# Edit an existing prompt
+# Edit an existing prompt in default editor
 grimoire edit <prompt-name>
 
 # Use echo prompt to verify prompt loading
 # Requires Ollama running locally with a configured model (default: llama3)
-grimoire generate -p echo "Testing generation functionality"
+grimoire generate --prompt echo "Testing generation functionality"
+
+# Modify prompt in default editor before generation (doesn't require arg)
+grimoire generate --prompt echo --edit
 ```
 
+## Environment Variables
+
+GRIMOIRE environment variables control the configuration of the application.
+
+### Ollama Configuration
+
+- `GRIMOIRE_OLLAMA_MODEL` (default: "llama3")
+    The model to be used with Ollama for AI inference.
+
+- `GRIMOIRE_OLLAMA_URL` (default: "<http://localhost:11434/api>")
+    The URL endpoint for the Ollama API server.
+
+- `GRIMOIRE_OLLAMA_STREAM` (default: true)
+    Controls whether to stream responses from Ollama. Set to "true" to enable streaming, "false" to disable.
+
+### Editor Configuration
+
+- `GRIMOIRE_EDITOR` (default: "vim")
+    The text editor to use when editing prompts or configuration files.
+
 ## License
 
 This project is licensed under the MIT License. See the [LICENSE](LICENSE) file for details.