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Very simple, but you'll need to play well on the market. With this formation I wan at least two comp in the first 4 years.
Sell Ronaldo 17M, Gourcuf 15M Simic 4M, Brocchi 4M, other 6M from reserve players.
GK: Dida - good for 3 years, then I got Amelia.
FBR: Oddo - good for 2 years, then I got Lazio's young guy I forgot the name of, 20M.
FBL: Chiellini - got him for 20M
DC: Nesta
DC: Criscito - after 5 months, Kaladze before
DM: Gattuso
MC: Pirlo - to have him play properly trin him as an AM
MC: Seedorf good for 3 seasons, replaced by Montolivo
AM: Kaka - use Giovinco for replacement 13M
FC: Gilardino
FC: Inzaghi/Palermo/Pato (use Pato for youn guys) then try to sign Bojan from barca (no contract) but you have to give him a key player role a fill him with money, he'll join season 2 for free, top class player!
I started playing now with AC Milan and it's going very well, winning home and away with ease.
I play a classic 5-3-2 Formation, like this:
GK: Dida
FB: Oddo, Kalahdze
CB: Bonera, Nesta, Maldini
DM: Gattuso, Pirlo
AM: Kaka
FW: Ronaldo, Gilardino
That is if you want to use their current players as you've requested. Gpolonia you must missread his post!
But since we are there, think about buying Daniel Alves to replace Cafu/Oddo later on;
From the beggining buy Barzagli to Palermo and another forward. Many interesting will be avaiable for less than 20 M, like Amauri, Obafemi Martins, Michael Owen and sooo many other.
Give Pirlo set pieces and play a posession football, mixed attacking with your Full backs (they really aren't) crossing from 3/4
FM08 AC Milan tactic help! 
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