Wait 15 Minutes
This is a known problem, wait about 5-10 minutes. I know it is scary for it hang for that long.
If it doesn't go into recovery on it's own after 10 minutes turn the phone off. Sometimes it gets stuck on the Touchscreen update screen Charge it if necessary.
Start it by holding the volume down and power to boot into recovery. It may take a long time.
Flash a 4.1 based version of Color Rom to get the correct modem back. This is why the WIFI wasn't working.
Reboot into recovery and flash Cyanogenmod WIFI should be working.