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The subject and the body are joined into a single block of text. The first line of that block, and any other lines starting with -- become new actions. Other lines become notes for the preceding action. I'm usually creating single actions, so I just put it all on the subject line:

Subject: action from Mail > Miscellaneous @Home #Friday

If you are doing it in the Subject line, you don't need the -- to start it off, though it doesn't seem to harm anything. If you split the text as you did, you'll end up with part of it in the notes field. The action parameters all need to be on the same line.