I have a 3 year old Chihuahua, female by the name of Chantilly Lacie. We call her Lacie for short.
The breeder that we got her from trains her dogs to use a potty box, and she uses shredded paper. Even in the winter, I didn't have to worry about letting her out in the cold to do her business.
She is the greatest. We also live in a condo and it is PLENTY of room for her.