In my understanding, a number $i$ has an inverse $i^{-1}$ in $\mathbb Z_{n}$ if $i\times i^{-1} \equiv 1 \pmod{n}$
e.g.: In $\mathbb Z_{14}$ the inverse of $3$ is $5$ since $3\times5\equiv1\pmod{14}$
But what about in $\mathbb Z_{35}$? The inverse of $5$ is supposedly $29$ but $5\times29=145\equiv5\pmod{35}$ and not $1$
How do you actually find an inverse of $i$ in $\mathbb Z_{n}$?
edit: Oops, forget it, I just misread the question - it was meant to be $\mathbb Z_{36}$ in which case $145 \equiv 1 \pmod{36}$
In $\mathbb{Z}_{35}$, 5 has no inverse. If it did, then we would have $(1) \cdot 7 \equiv (5^{-1} \cdot 5) \cdot 7 \equiv 5^{-1} \cdot (5 \cdot 7) \equiv 5^{-1} \cdot 0 \equiv 0$.
In general, $i$ has an inverse in $\mathbb{Z}_n$ if and only if $i$ and $n$ are relatively prime. I'm not sure who told you that 5 and 29 were inverses mod 35, but they were wrong.
As far as finding the inverse, I don't know what the most efficient algorithm is in general. For small $n$, you can just try different values until it works. If $n$ is prime, then Fermat's Little Theorem says that the inverse of $i$ in $\mathbb{Z}_n$ is $i^{n-2}$. You can find a proof of Fermat's Little Theorem on Wikipedia or other sources, I don't know of any brief proofs.