Creating an iTunes library on external hard drive

So I've done a bunch of google searches for my dilemma but can't find the answer as I'm not trying to move my folder but create one. Here's my situation; I have transferred all my CDs to digital files and have them all in a folder on my external drive. A friend set this up before and he created an iTunes library recognizable by the application on my iMac. It took all night as it appeared all the files in my folder were added to this library. Anyway I had a power cut which turned my computer off and now I'm back to square one. My music folder sits on the external hard drive still but I can't find the iTunes library that my friend created to connect to.
Any help would be greatly appreciated. Thank you!

Thanks Gordon. I've done this but the files do not seem to be recognized by iTunes when I open the application. It's basically empty.
Here's the path on the advanced setting:
/Volumes/Boring 1/MylesOfMusic/iTunes/iTunes Media/Automatically Add to iTunes.localized/Music
I feel like there is a simple step that I am missing but I can't figure out what that is.
Thanks again for your help.

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