It will have been saved in your Home/Library/Mobile Documents/com~apple~TestEdit/Documents folder.
In Lion and Mountain Lion that Library folder is now invisible. To make it permanently visible enter the following in the Terminal application window: chflags nohidden ~/Library and hit the Enter button - 10.7: Un-hide the User Library folder.
Hi, Mr. Old Toad,
Well, this is news to me. Okay, what and where is the 'Terminal' window. It's not in my Applications folder. I have completed searching Finder, but nothing shows up including anything you have described as the routing to folders listed in your screen shot.
Entering deep waters ...
This is how my Home appears:
Greetings, from Canada,
Many thanks, Winston, for your instructions. I performed a 'test' document and saved it to iCloud. When I re-opened TextEdit, as you say, iCloud opens its screen and there was my test document. I have got the picture now with your help. Evidently, I still have a choice as to where I wish to save a document. Knowing about how iCloud works though, is helpful. Displaces me from 'dummy' mode to 'smart' mode.
Have a great day!