I did this project with our girl scout troop. They all screamed when I stuck my hands in the "batter" But, once they did it, and started using it, they couldn't believe how fun it was. We made animals (I pre-made the forms with aluminum foil) based on Oaxaca folk art. The following week we painted them. It takes a while to dry.
So yes, I did it the old-fashioned way: flour, water, newspaper strips.

I have just used the stuff you wet & mold, we made old fashioned Santas 1 year. I still have mine. How about using stuff you cross shed in paper shredder, sure would be easier than stripping papers! Jan

You can add lint from your dryer into the paste to hold better. And maybe a layer of tissue or napkins (taken down to one ply) to be a bit smoother and you can sand it lightly before you cover.

hey TMG :D
last year I did some Halloween candy totes. I blew up small balloons and did it the old fashioned way with glue and torn strips of newspaper. I used Aleen's tacky glue in some water, and put a few strips of paper in it at a time. When I liked the look, I added some colored tissue paper to finish, but I think painting would be easier. I don't know how sturdy it would be to mosaic,lol, but they sure did get hard! I remember my daughter making a pinata for school that the class had to saw open, though :D hehe