Another option is to:
1) double tap on a word (or double tap and drag on a passage)
2) When the dictionary bar comes up at the bottom, tap on the highlighter icon--this highlights the bit that you had double tapped
3) Close the dictionary bar by tapping on the X
4) Single tap on the now-highlighted word/phrase
5) Select if you want keyboard or "drawing" notes
6) add your note
When you close out of the "note" page, the highlighted bit will have a teensy little note icon next to it to tell you that there is a note attached to it. If you single tap on it again, it will bring up that note.
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