I have a slash cutter..... scissors is way to hard on the hands - well for me anyway..... flannel works the best but you can use other fabric if you want.... just remember you either have to sew on a 45 degree or cut your fabric on a 45 degree or the fabric will not as you say fuzz out.
Hope this helps you..... one thing I wouldn't do is mix fabric..... all cotton or all flannel.
scrapquilter