ERROR 1045 (28000): Access denied for user

My local MySQL has no password for root user. I have added a new user with password and I’m trying to login to MySQL. This is what I got!

G:\XAMPP\mysql\bin>mysql -ugaja -p
Enter password: ****************
ERROR 1045 (28000): Access denied for user ‘gaja’@’localhost’ (using password: YES)

What I have done?

1. Stop Mysql from XAMPP console
2. Start the mysql from command line as given below

   g:\xampp\mysql\bin\mysqld.exe --skip-grant-tables

3. From another cmd I logged in to Mysql

   mysql -u root

4. Set the password string for root user

   UPDATE mysql.user SET Password=PASSWORD('password') WHERE User='root';

   FLUSH PRIVILEGES;

5. Check if passwordless login is allowed still.

   G:\XAMPP\mysql\bin>mysql -u root

   ERROR 1045 (28000): Access denied for user 'root'@'localhost' (using password: NO)

6. Lets login with password now

   G:\XAMPP\mysql\bin>mysql -u root -p

   Enter password: ********

   Welcome to the MySQL monitor.  Commands end with ; or \g.

   Your MySQL connection id is 4

   Server version: 5.6.21 MySQL Community Server (GPL)

7. Remove the anonymous user account

   DROP USER ''@'localhost';

8. Let me try to login with the user I’ve created newly

   G:\XAMPP\mysql\bin>mysql -u gaja -p

   Enter password: ****************

   Welcome to the MySQL monitor.  Commands end with ; or \g.

   Your MySQL connection id is 1

   Server version: 5.6.21 MySQL Community Server (GPL)

Enjoy!