Alright I was asked to summarise my experience modding a YH-1 so here is my, hopefully helpful, guide. All information was skimmed off wualta, ericj, and I'm sure various other third parties.
Step 1 is to remove the driver from the baffle. This is a bit annoying and hand cramping, but fairly straightforward. Observe the naked baffle:

Take note of the screw placements. Peel back the earpads as slightly as possible over these areas to expose the black bumps (the screws are under black double-sided tape, you'll need direct lighting to make them out, try feeling around with your finger for the bumps). I suggest scraping the tape off the screws, either with your fingernails or screwdriver, then we can start unscrewing. Support the strut (the bit with the white L or R on it) with your palm and support the back of the earcup with the rest of your (non-dominant) hand. With your dominate hand get unscrewing. The first time you do this it can be frustrating if the screws are as stubborn for you as they were for me, but so long as the strut and earcup are properly supported you should be able to use a decent amount of force without hurting anything. Be mindful not to slip and slash the veil covering the center of the driver. Remember: lefty loosey

That's honestly probably the hardest part of the mod, congratulations. Take the yellow fabric and felt strips out and put them away.
Ok part 2 is making and assembling your damping materials. You will need: 2 circles of felt of different size, paper (I used a birthday card), and springy foam (about 1cm thick). Cut everything, except one of the felts, to the size of the driver, and arrange everything in this order with the smaller felt right behind the driver (imagine the driver on top (and imagine I cut those in proper circles))

The final felt (the first one you put in) serves to cover the vents on the housing, so it should be large enough to hug the sides of the housing like so

Part 3 is gasketing the driver. Get some Tak or Caulking rope or some sort of puddy/clay and make a ring around the face of the driver like so:

I used more caulk than necessary, you need only a thin circle. Press down on the material to make sure none goes into the holes. Theres a notch on the bottom of the baffle and the earcup that hook up to hold the cable. Line those up (with the cable inbetween to be sure) and press down so the driver and baffle are connected. The real reason for this is to prevent bass from leaking out between the driver and baffle, but it also leaves you with one less part to have to screw around with.
At this point put everything back together (dampening materials sit in the earcup BEHIND the driver, remember

) and give a listen. Hopefully the sound is either just right or a bit too dark. If it's too bright you're probably using denser fabric than me and might consider seeking a different sort of felt. The first two cases, yes even if you think it's fine as is, leads to the final part: the reflex "dot".
This will help to fine tune the treble and manages rather dramatic changes with just labels, tape, post it notes, or somesuch. Dissasemble the headphone again and check out the back of the driver. Place a label of some sort on some of the holes at the top of the driver like so

How many dots you cover is up to taste and will differ depending on the density of your felt, but here's my general guide. 2 dots = flat. 3 dots = a nice treble sparkle (I went with this). 5 dots = extreme sibillance. UPDATE: This is also highly dependant on your system. Since my move to a warmer amp I've been using 5 dots.
Listen attentively and you may change your mind about the sound and go back to experiment with reflex dots, but other than that you're done!
If I've made any mistakes in this please point them out so I can improve the guide.