Creating a phone number lookup bot using Microsoft Bot Framework and C# involves several steps, starting with setting up the necessary tools such as Visual Studio 2015, Twilio Account, and Azure account. The bot is then created using the Bot Connector Template for Visual Studio, which provides a working messaging API that can be modified to perform tasks like phone number lookups. A new class called TwilioLookupService.cs is created to handle the logic of connecting with the Twilio Lookup API, allowing the bot to retrieve information about a given telephone number. The bot's functionality is then enhanced by deploying it to Azure and registering it with the Bot Framework. After registration, the bot can be configured to use an SMS channel, enabling users to send messages to the bot via text messages. With its capabilities now expanded, the bot can be further customized to perform additional tasks or even integrated into other platforms like Slack or Facebook.