get archive by date

I found out how to get a list of posts using ‘postbypost’ but it just gives them to me in a list, how can I then put in headers for each month? I want something like this:

http://www.farfromfearless.com/archive/

So it lists every post under a header for that month/year. I guess I could do it using a ton of post queries but is there another way?