is there any way possible to create new test case based on the existing test case like i want to just update one step and rest of the thing i want to copy from old test case.

Is it possible in Microsoft Test Manager (MTM)

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Got the Solution, its very easy..

Just right click on the existing test case and select "Copy and add to suite" it will create new page, modify the test case and add it.

http://msdn.microsoft.com/en-us/library/hh543843.aspx