Google pushed out 4.0.4 update for its Google Nexus S, Galaxy Nexus and Xoom users.
Here is info for updating your Nexus S without voiding your warranty.
Before you go into this check for update if available by dialling *#*#CHECKIN#*#* (*#*#2432546#*#*)
Also you can go in Settings -> About Phone -> System Updates
If it ain't there .. no worries it is here :D above steps were just to save you from all these steps :)
Download the update from here
Step 1: After downloading the update file, rename it to “update.zip”. (So it's easy for you to find it during the process)
Step 2: Copy this file to the root directory of your Nexus S
Step 3: Power off your device
Step 4: Keep pressing Volume Up button and then while holding Volume up press Power button.
Step 5: By using your volume keys for navigation, go to “Recovery” option and select using “power” button.
Step 6: You’ll see an exclamation mark on your screen. Hold the Power button followed by Volume up button
Step 7: From the Recovery menu, select the update from SD card option and browse to the update.zip that you have copied in step 2. Select the power button to confirm.
Step 8: Now select “reboot system now” option. That’s all you need to do.