I hand stitch hexagons. I buy the small card stock hexies from my LQS. A pack of 100 is about $4. I use square precut fabric pieces, wrap around the paper piece using 1 or 2 stitches per corner. Same piece of thread, this is a baste stitch and is removed after pieced. I use a spot of Sewline fabric glue in the center of the paper piece to hold fabric in place before basting. The finished pieces are sewn together using a whip stitch. The important trick is to leave the paper piece (which is really card stock) inside your hexie until all 6 sides are connected to another piece. Just line the hexie up, right sides together. Easiest to sew them in rows. If you are careful, the papers can be re used a few times - so be careful when you take them out.
I watched a demo at my LQS. The girl that gave it was in her 20's. The stuff she had made was awesome.