First I want to say that I tried reefing and didn't find it to be very effective. I have had my boat for 29 years. Hobies since '85 don't have reef points because of the comptip mast and the extra wire in the halyard needed for the second slug. It would negate the electrical isolation that is the purpose of the comptip.
I got out my original assembly manual and it has two pages of instructions for reefing. You lower the sail to the second slug on the halyard, slack off the downhaul, and pull the sail down. Remove the pin at the forward grommet at the clew (front bottom corner of the main) and refasten it through the grommet at the reef point. Loosen the outhaul and tie it to the rear reefing grommet, run it around the boom, back through the grommet, then around the rear of the boom and to the outhaul jam cleat. Finally, use short lines to tie the reef grommets to the boom but don't make them too tight.
I could scan and send you the two pages if this isn't clear enough. Send me a provate massage with your email address.