I think you can add the location of the file ssh-keygen.exe in the PATH environment variable. Follow the steps: Go to My Computer->Right click->Properties->Advanced System Settings->Click Environmental Variables. Now click PATH and then click EDIT. In the variable value field, go to the end and append ';C:\path\to\msysgit1.7.11\bin\ssh-keygen.exe' (without quotes)
I just had this issue and thought I'd share what I thought was an easier way around this.
Open git-bash and run the same command with the addition of -C since you're commenting in your email address: ssh-keygen -t rsa -C "email@youremail.com" command. That's it.
git-bash should have been installed when you installed git. If you can't find it you can check C:\Program Files\Git\Git Bash
The first time I did this it failed to create the .ssh folder for me so I had to open a standard Command Prompt and mkdir C:\Users\yourusername\.ssh
@SET PATH="D:\Program Files (x86)\Git\bin";%PATH% after @SET PATH=%HEROKU_RUBY%;%PATH%
in my case it's in D:\Program Files (x86)\Git\bin, change it to the path you've installed Git to. (i just left it with my path so it will be clearer on how to write this)