More water is better than not enough since you have to strain it anyway, which brings me to the next step. Strain it! I used a small mesh strainer and kind of bounced the pulp up and down in it. I squished it too until it felt rather wet but not soggy. The third picture shows what it looked like.
Next step is mix in glue. I used regular old white glue and used quite a bit of it too. It's hard to say just how much in relation to the amount of paper pulp, but I folded and blended enough so that when I rolled it in my hands I could feel the stickiness of the glue on my palms. To me that seemed gluey enough.
Next I rolled the pulp into balls or other shapes. My pulp probably wasn't loose enough to make things other than circle shapes since I rushed this and I think the paper really should sit in water overnight before blending. At any rate, I rolled the pulp into the shapes as you see and placed them on a piece of waxed paper.
They are currently dry and seem rather hard and have a bumpy, pitted texture to them. Next I'll drill holes, apply a sealer and string them as little gifts.