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Josiah Ray demonstrates how to enlarge an individual cell in Microsoft Excel by using the "Merge and Center" function. This allows you to make one cell bigger without affecting the surrounding cells. By selecting the cell and four surrounding cells, then clicking on the "Merge and Center" button under the Home tab, you can create a larger, combined cell that can be adjusted in size and moved around as needed. However, note that this action merges the cells, so bear that in mind when utilizing this function.