The Orion Nebula (cloud) lies about 1,350 light-years from earth in the sword of the hunter’s figure in the constellation Orion. It contains hundreds of very hot young stars. Radiation from these stars excite the gases in the nebula and cause it to glow. 

I imagine that the stardust collecting in the stellar clouds’ gravity must be much different than the aerosols on earth used to form clouds. The experiment below is a wonderful example of how clouds form on earth though.

How To Make A Cloud In A Bottle