This afternoon, I did a quick tut for my sister for this. I made my own templates, and I made a 3 1/2 for her. With this thin of a template, I ended up drawing around the template. Then it can either be cut with a rotary cutter using a ruler or another thicker plastic, or you can actually cut it with scissors. I only used 4 blocks across just to show her what I was doing, but I would suggest goint across the top row, then sewing that together. Then do the second row, sewing that row together. You can either sew those two rows together, or just keep them in rows. Because if you keep them as little squares and a breeze comes along, you will have a hard time figuring the patterns out again if you are making a larger quilt top.
Once you do a couple of the cuts, it will make sense to you and you will see that it really is very easy. I'll add some pictures to help.
Give me a min. and I'll upload some pictures and maybe that will help you.