Used to be I would start writing long hand; and after a fur piece, I'd switch to typing (revising the first part before writing the second). Lately I have just started writing on the word processor to avoid "hat confusion" (that is having the writer and the editor in my head get confused as to who's doing what). Now I wear my writer hat until the first draft is done. Then I set the work aside for as long as I can. Then I put on the editor's hat.
I usually print out a hard copy for the first edit (poor trees...I know, I ain't as green as I should be). I do interlinear edits which usually spill over on to the backs of pages with symbols (*,#,@, etc) indicating which block of text goes into which place like footnotes only messier. This results in a kind of first and a half draft that looks like a dictionary barfed on the page.