1. I use Kanji Gold to isolate what my next Kanji are (I go by grades in school). I pick between 10-20, depends on how busy my week is going to be. lf I've got two marching band rehearsals, a football game and a competition in the same week, I'm probably only going to do 10 that week. Let's say that I choose 夢
2. I start the week by making big copies of the kanji and pasting them to the inside of my clarinet/oboe case, locker, binders, whatever I look at a lot. That way, I get used to seeing the kanji. From using the Kanji gold, I already know what they mean, and if I need to, I can look it up again, but ussually I don't need to. So when I look at 夢, I will automatically say, "Hey, that means dream." I don't need to create mnemonics (trust me, I did that for the first 200, and it drove me nuts).
3. At this point, I start to write them. More than likely, they won't be pretty, but it's more for the stroke order than anything. I get the wierdest looks from my teachers when the margins are full of random kanji, though that's just the first week of school, than they start writing comments on how pretty they look (the most japanese they know is domo arigatou mr. robato).
4. I use my dictionary, since it has compounds for the kanji in question, and I start using them in sentences. I trick my mind into memorizing the on-readings. So for 夢 (mu), I'll get 夢中、悪夢、迷夢...
5. Finally, I'll take a look at the kun-readings. If it's a verb, I'll check if it's transitive or not. If it's a verb, I'll go to Jim Breen's site (http://www.csse.monash.edu.au/~jwb
/wwwjdic.html), and get some example sentences for the verb. I usually store them in the back of my head. If I need them, I'll use them. I may have to look them up to make sure I have the exact meaning, and I don't feel ashamed doing it. Now 夢 is easy, it's just yume.
6. Now that I've studied the 10 kanji extensivly, I go to the next set. It's really satisfying when I look back on the former quarter and see that I've learned so many kanji!
At the end of the year, I give myself a test. Out of 929, I only missed 13. It works, and I do it in my spare time, using pure brain power, and skills that I've used to learn how to read English since I was 4.