basically you bind each block then whipstitch the blocks together. I did some of this in the 90's and used one of my machine stitches to sew the blocks together.
Potholder quilts is the current name I think, they were called quilt as you go back then
http://www.marcusfabrics.com/feature...l#.WF0oMPkrLIU
I think this blogger is behind the resurgence of the technique
http://theconstantquilter.blogspot.c...revisited.html
edited to say, way cute block
and like the quilting on the background!