There’s really no best way to do it–just depends on what you prefer. There are two basic methods for character modeling (not including NURBS): one is point-by-point, where you build up a character by laying down points and then bridging them together to form polys; the other is box modeling, where you start with a primitive and form it into your character using knife cuts and extrusions. Even if you start out with the point-by-point method it tends to converge with the box modeling method once the basic mesh is layed out, i.e., you then begin cutting new edge loops, doing extrusions, etc.