Hello QCS,
I just went through this potty training thing, so I will tell you which method has worked for me.
First of all, I learned off the bat that paper training was a bad idea. It stains things (like toys), it stinks, and it won't take very long for your pup to think of it as a toy. My trainer also pointed out that some time down the road if you find yourself reading a newspaper and set it on the ground to tend to something else, you might come back to find a puddle of wee in your newspaper. It's not the dog's fault, it was the way that he was trained.
Proper pads are a better choice for this reason. They also attract dogs to eliminate on the pad. Some have bad aims (lol,) but hey, at least they will try.
For Kosmo, I didn't use either. It was a lot faster for me to teach him only to eliminate outside. I took him out every half an hour when I was with him all the time. There were MANY times when he didn't eliminate, but when he did, I made a HUGE deal about it (treats, GOOD PUPPY!) and let him know that it was a good thing. As he got better at going outside, I would take him out less frequently. But it is a chore in the beginning.
The site mod on here has posted some wonderful information about potty training in the "caring for your Cavaier" section. Here's a link to that:
http://cavaliertalk.com/phpBB2/viewtopic.php?t=75
Good luck with your puppy and let us know how it goes. Remember - patience is the MOST important thing.