I draw the illustrations on normal white printer paper, ink their outlines, color them in pencil and then cut them out with my small papercut scissors and glue them down. I'm pretty happy with the project so far as it's a good exercise in various areas: sketch, coloring, calligraphy, planning, placement and neat cutting. Which means something as I'm a rather impatient and don't work as neatly as I should.
I'm guessing the book has got room for six or seven fables. I'm only going to do legends concerning animals; coming up are ones about a kitty, a white goat, three horses and St. Meinrad's two crows. If there's room, I'll a story about a Swedish steed.
(Yes, I like drawing horses and need more practice.)
I probably won't do much else until that project is finished.