I use phone book pages and after sashing or putting into rows, I remove the paper. I use my seam ripper to run along the stitches and pull off the paper. A little time consuming but makes beautiful blocks. I do this with strings and also selvages.

I too have heard that you leave the paper on until you sew the piece to the next piece because of bias edges so that is what I do. Sometimes I remove the center papers just so there isn't as much to tear out at the end.

Here's a hint. Try doodle pads from the $ store. The paper is pulpier and cracks off at the sewn line easier. I do make my stitches a 1.8 or 2.0 also. I also wanted to try the paper for embroidery that dissolves.