Thanks to Euan Semple for tipping me off on the new blogroll feature in Google Reader.
I can now simply keep all the feeds I read updated in Google Reader. Tag them and then create a blogroll for each tag as I see fit and embed that blogroll on my Weblog. So I have two tags/blogrolls : "KM Blogroll" and ""Other Blogroll" - take a look at the right hand column of my weblog and you will see the two blogrolls.
The beauty of it all - its kept updated by Google in real-time. I now need to do nothing and the blogrolls reflect all the sites that I am reading.