Holy cow, this is a basic question, don't shoot me. How do you capitalize on (no pun intended) typos and misspellings? With broad or phrase or exact matching? I've never done this before...
Depends, just as with any word or phrase. I have misspellings for single words, which are more common than multiple words in the campaigns I run. So I keep these broad. I only go in to phrase or exact if it's a common phrase or commonly used in that order. And, of course, the misspelling is common. I've cut many other misspellings out because they weren't doing anything, while others drive a nice bit of traffic.
Think about how people say (pronounce) things and that may give you some ideas for mispellings. I will give you an example. The town I live in is called Altrincham. It is pronounced Altringham. I did a trial on Adwords and approximately 10% of the impressions were for the misspelling of the name. The benefit was that the CPC was much lower for the misspelling and the average position was much much higher. The problem I have found is that if you search for Altringham, Google will prompt you and say "did you mean Altrincham" and I suspect many will notice their error and navigate away from that page.