SO fiddle

Test Fiddle mainly for SO Questions

by Nick Craver

HTML

<link rel="stylesheet" href="http://ajax.googleapis.com/ajax/libs/jqueryui/1.8.4/themes/overcast/jquery-ui.css">
<div id="thingy">Test Content to edit, click me!</div>

JavaScript

$(document).ready(function(){ 
   $("#thingy").css('cursor', 'pointer');
   $("#thingy").one("click", function() { 
     var element = $(this);
     element.css('cursor', 'auto');
     element.css('display', 'inline-block');
     element.fadeOut(100, function(){element.html('<input type="text" size="25" value="' + element.text() + '" style="width:' + element.width() + 'px;height:' + element.height() + 'px;border:none;padding:0px;margin:0px;">')}).fadeIn(100);
     $("#thingy").click(function() {
       return false;
     });    
     $(document).click(function() {
         alert("You clicked off the text-box");
         element.html(element.children('input:text').val());
     });
     return false;
  }); 
});