So here are my instructions for turning a used paper cup and a pile of misprinted paper into a small notebook.
Step 1: Materials List
A used paper coffee cup
A pile of paper. I used misprints that were headed for the recycling bin, but you can use whatever kind of paper you want in your finished notebook (water color, news print, etc)
A sharp utility knife
A scissor you don't mind using on cardboard
Binder clips, at least two
A straight edge that you can cut against
Some small nails
A scrap of wood for protecting your table top
A blunt, large eyed needle
Heavy duty thread.
Step 2: Preparing the Cup.
You now have a flat piece of cardstock with a rolled upper edge and a slightly curved shape.
Fold the cardstock in half to find the middle, and then cut along the fold to separate the "cup" into two equal parts.
Use the binder clips to clamp one side o the cup so that you can trim the two pieces to exactly the same size. This is easiest to do with the utility knife.
Step 3: Cutting the Pages.
After you have cut out all the pages you can reclamp your "book" with the other piece of cup as the back cover.
Step 4: Punching Holes for the Binding.
Using a piece of scrap wood to protect your table top, pound a nail through each of the marked spots to punch a hole. You could also use an awl, but I find that with a nail there's less chance of pages shifting.
Step 5: Binding the Book.
Separate the pages slightly, and puncture the pages next to hole number 2, pushing the needle through ten or so pages. Then bring the point of the needle up through hole number 2 so that it is on the front side of the book. Wrap the thread around the spine and bring it back up through hole 2. Now put the needle into hole three, leaving a long running stitch along the front of the book, wrap the thread around the spine and put the needle back through hole 3. Take another long running stitch to hole 4, around the spine and back through hole 4, and then around the bottom edge of the book. This will make a little square on the corner. Now a long running stitch to hole 3 (should be on the opposite side from the first) and from three to 2 and from two to one. Around the spine edge and back through hole 1, then around the top edge and back through hole 1. Finish with a long running stitch to hole 2 and you are back where you started. Tuck the tip of your needle through the spine stitch and put the tip of your needle through the resulting loop to make a knot. Push the needle down through hole two to the back side of the book and cut off the thread. You can get a visual representation of these steps at this website.
Voila! A book where before there was only garbage.