Open a MIDI karaoke file in a MIDI sequencer or multitrack editor. Power Tracks Pro Audio is a good choice. The karaoke file extension should be .kar, but may also be .mid, as long as one of the multiple tracks contains the lyrics.
Select "Copy Lyrics to Clipboard" from the drop-down list under the "Tracks" tool bar.
Paste contents of the clipboard into a word processor. Use Microsoft Word or another editor with features for formatting the text.
Edit the text to separate verses from the refrains, and to add spacing or other desired text enhancements, such as special fonts, bold, italics or headings. Include only one song per page, unless you want to create a more compact song book.
Continue extracting lyrics and adding pages to your song book file.
Save the file. You can add to the song book later or make changes to one or more songs.
Print out the pages of your song book after you have extracted and edited the lyrics for all your songs.
Punch holes in the pages and put them in a three-ring binder. Use plastic page protectors to prevent wrinkling or tearing of pages.
Separate the songs by category or language or alphabetically by song title. In Microsoft Word and other editors you can create a table of contents that displays the page numbers where the songs can be found.