key 1: fire on target, fire on touch, area fire on touch, fire on target, basket, frost on target, frost on touch, area frost on touch, frost on target, basket
key 2: frost on target, fire on target, frost on target, basket, fire on touch, frost on touch, fire on touch, basket, area fire on touch, area frost on touch, area fire on touch, basket
Pressing key 1 will switch between on target, on touch, and area on touch, and then wrap around to on target again.
Pressing key 2 will switch between fire damage type and frost damage type.
Walla, smart cycler keys.
The baskets are used because equipping them has no effect, and they are never equipped. You can drop the basket after the hotkeys are set up if you want.
another one:
key 3: on-target spell, on-touch spell, on-target spell, basket, bow, sword, bow, basket
Pressing key 3 alternates between long range and short range, and does so for both weapons and spells at once. Mind you, if you alter your spells to something else then it will stop cycling spells, and if you switch to the wrong one of the spells, out of synch with your weapon, then it will stay out of synch when cycling
key 4: bow, sword, bow, on-touch spell, basket, sword, on-target spell, basket
Pressing key 4 alternates between ranged and melee, and does so for both weapons and spells at once. If your weapon and spell get out of synch, it assumes your weapon is right and corrects your spell to match. It's an improved version of key 3, I think. I'm not really sure.
Here's a good one:
key 5: daedric cuirass, glass cuirass, daedric boots, glass boots, daedric helmet, glass helmet, daedric gauntlets, glass gauntlets, daedric greaves, glass greaves
Pressing 5 will alternate you back and forth between a full heavy armor and full light armor. Okay, maybe one set should be replaced with, say, clothes or something. You could have a melee outfit and a stealth outfit and a social outfit and a magic outfit, and use a single hotkey to alternate between them. Unfortunately, that only really works with this hotkey type if they all occupy the same slots (ie you can't have one outfit with no boots for instance, or it will keep on the boots from the previous outfit, and extra care will be needed to make sure the next outfits boots are set up to go on with the next outfit)
Anyway, you get the idea.