To find stagnation points for incompressible flow around a cylinder using the stream function, identify representative nodes to solve the velocity equations. Finite differences can be applied to the Navier-Stokes equation at each node to determine flow velocity. Stagnation points occur where the velocity components, derived from the stream function, are both zero. Specifically, the velocity components are calculated as u = dψ/dy and v = -dψ/dx. Analyzing the surface of the cylinder for points with zero velocity will reveal the stagnation points.