The charging system is the same as the KTM and many small bikes and engines.
It has a fixed stator coil under the flywheel that has magnetized areas on the flywheel swinging by it.
As the magnet swings by the core of the stator coils, it creates a pulse of voltage, pushing current,
first in one direction, then in the other as the opposite pole of the magnet sweeps by. As the RPM increases, so does the voltage.
Too much voltage would burn out the bulbs. To limit it, there is a voltage limiter (regulator) is put across the wires of the stator coil.
When the voltage (PRESSURE of electricity) exceeds 12v (usually 13.5 or so actually) the voltage regulator conducts
current (FLOW of electricity) to keep the voltage down.
Understand that if nothing is using current, almost all the current made at the stator will flow through the voltage regulator,
and eventually burn it out because it becomes a 40w heater.
For this reason the switch for your headlamp is usually BEFORE the voltage regulator.
Also this is the reason a burnt headlight bulb often destroys the regulator if it isn't replaced within a few hours.
One wire is often (but not always) grounded to the frame of the machine.
The voltage regulator would be shorted from the live wire to the frame in this case, and would only have
one wire to it (the bolt to the frame being the other wire). A 2 wire voltage regulator is used on an ungrounded AC system.
On the Blaster, like some of my KTMs, the stator is only designed to put out 40 watts of power.
That is why a 55w headlamp bulb is not as bright as a 35w in these bikes, and why it dims at idle,
the 40w is only up at running speed, about 2500rpm or so. If you have a 55w bulb in your Blaster,
the stator cannot produce enough current to supply it, so the voltage will drop.
These are a "constant loss" system, where the total output of the stator is always used.
This is part of the reason it is only a 40w system, to limit the drag on the engine.
To get a brighter headlamp, your choices are limited. You could:
1) get a brighter 35w bulb. Halogen and xenon and HID are brighter than incandescent.
2) get a higher output stator. Buy or rewire for 60w or more.
3) get a better reflector. Some headlight units throw light better than others.
4) get rid of other losses, such as 4w tail light, with a 0.5 LED tail lamp.
All bulbs and reflectors are not equal. The simplest and cheapest answer is to find a 35w bulb and housing
that really throw the light in a useful pattern. Walmart "driving lights" really suck and most of them are 55w.
Quality 35w halogen bulbs cost $$ but throw more light than the cheap ones.
To get DC and charge a battery, you have to add a rectifier. That is the little "baseball diamond" shaped thing
in the middle right of that drawing above. That is a "full wave rectifier" which is the most efficient.
A half wave rectifier will reduce you DC output to about 18w. Not enough for any sort of a useful headlamp,
so you would have to float the ground of either the AC or DC side of the circuit.
Many combined Vreg/rec units for bikes only put out a limited DC supply like this because the headlamp is still run on AC.
They won't work for supplying an HID headlamp.
Here is a Blaster wiring diagram, hope this is some help.