I created an Azure App Service Environment but when I opened up the App Service Environment blade I didn't see a way to create web apps on it.
How do you create web apps on App Service Environment?
You create it the exact same way that you create regular websites. When you try to create a web app the App Service Environment shows up as an additional location in the Location blade.
Note that you'll have to create a new App Service Plan (previously called Web Hosting Plan) in order to change your location.
You can find full details on how to create it here: https://azure.microsoft.com/en-us/documentation/articles/app-service-web-how-to-create-a-web-app-in-an-ase/