A good example from java.util.Collection of specifying a generic method which defines its own generic type is Collection.toArray where the method signature looks like:
<T> T[] toArray(T[] a);
This declares a generic type T, which is defined on method call by the parameter T[] a and returns an array of T's. So the same instance could call the toArray method in a generic fashion:
Collection<Integer> collection = new ArrayList<Integer>();
collection.add(1);
collection.add(2);
// Call generic method returning Integer[]
Integer[] ints = collection.toArray(new Integer[]{});
// Call generic method again, this time returning an Number[] (Integer extends Number)
Number[] nums = collection.toArray(new Number[]{});