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From the National Honey Board at:
http://www.nhb.org/foodserv/usage.html

Substitution and Usage Tips

To substitute honey for sugar in recipes, start by substituting up to half
of the sugar called for. With a little experimentation, honey can replace
all the sugar in some recipes.

 When baking with honey, remember the following:

Reduce any liquid called for by 1/4 cup for each cup of honey used.
Add l/2 teaspoon baking soda for each cup of honey used.
Reduce oven temperature by 25° F to prevent over-browning.
 Because of its high fructose content, honey has a higher sweetening power
than sugar. This means you can use less honey than sugar to achieve the
desired sweetness.

 When measuring honey, keep in mind that one 12-ounce jar of honey equals a
standard measuring cup.

 When measuring honey, coat the measuring cup with non-stick cooking spray
or vegetable oil before adding the honey. The honey will slide right out.