How do you create a new folder within a folder?

... without having to create it and drag and drop??

A new folder is created in the currently open folder.
I'm assuming you are trying to create a new folder in List view. The new folder will be created in the folder which that the open window represents.
If you want to create a folder within another folder, you must open that folder in icon view or select the new parent folder in column view.

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