How to adb sideload a new version of Android on your

Nexus 5
Prerequisites
In your computer
In your Nexus 5
Getting started
In your computer
Install Google USB Driver
In your phone
In your computer

Prerequisites
In your computer
Disable any firewall you have
Download Android SDK from http://developer.android.com/sdk/index.html e.g. adt-bundle-windows-x86_6420131030.zip
Download the latest Android OTA ZIP file e.g. http://android.clients.google.com/packages/ota/
google_hammerhead/7ed504f678cea49ecf0974e8cd956e2974e3f943.signed-hammerhead-KOT49E-fromKRT16M.7ed504f6.zip

In your Nexus 5
Turn on Developer Options by going to
Settings > About phone and tapping on Build number 8 times
Turn on USB Debugging by going to
Settings > Developer options > (slide Developer options to ON) and ticking USB debugging

Getting started
In your computer
Unzip adt-bundle-windows-x86_64-20131030.zip to e.g.
E:\Android\adt-bundle-windows-x86_64

Installing Google USB Driver

Open SDK Manager in E:\Android\adt-bundle-windows-x86_64
Tick Google USB Driver and install it.

Move the OTA ZIP file to E:\Android\adt-bundle-windows-x86_64\sdk\platform-tools

Connect the Nexus 5 to the computer. Computer will attempt to install drivers.
Go to Device Manager
If you see you Nexus 5 in Device Manager with a yellow exclamation mark:

right click Nexus 5 entry and update drivers.

If you do not see you Nexus 5 in Device Manager with a yellow exclamation mark:
go to Action > Add legacy hardware > Install the hardware that I manually select from a list

Select Have Disk and browse android_winusb.inf driver in E:\Android\adt-bundle-windowsx86_64\sdk\extras\google\usb_driver

Choose Android ADB Interface and install it

In your phone
Power down the phone
While holding the Volume Down button, press the Power button to start the phone
Using Volume Up/Down buttons, choose Recovery Mode and press Power button to enter
When the phone shows an Android with an exclamation mark, press Volume Up button once
Using Volume Up/Down choose apply update from adb and press Power button to enter
Connect the USB cable to the phone

In your computer
Shift right click the platform-tools folder and click Open command window here
Type the following command (note that the zip filename may be different to yours): adb sideload
7ed504f678cea49ecf0974e8cd956e2974e3f943.signed-hammerhead-KOT49E-fromKRT16M.7ed504f6.zip
Once installation is complete, reboot the phone using the Recovery Mode.