First off, you punch a row of scallops along your edge with your border punch. (See the brown paper below) Then, using the holes in your scallops if you're using Threading Water or putting dots in the centers of the SU scallops (or just eyeballing it!) you punch your teeny-tiny shape in the scallop. Wallah! You're done! I've done hearts (aqua paper), leaves (green, of course!) and then I got my round mini hole punch and did some punching each circle out and some every other. I love the look of the every other punch! (Another reason I prefer the Threading Water Punch!)
Here's a card I made for my mom's birthday this year using the technique and the star punch. Mom's got a thing for Americana-ish colors! She loved it!!!!!!!
I punched every other dot with a star and then colored through the top of the card onto the interior. This would also be a great way to get a stamped looking border of tiny shapes on your layouts.
And, that's it for my mini tutorial! (See, I told you it was short!) ;)