(Video link) This seven minute video shows the process for sculpting a hand in water-based clay by Philippe Faraut.
The general thought process is very similar to painting in opaque oils. You first establish the big forms, then carve them down to smaller planes and finally blend and refine the surface and the small details.
The artist's website, with more info on his materials and tools
Mr. Faraut's books:
Mastering Portraiture- Advanced Analyses of the Face Sculpted in Clay
Portrait Sculpting: Anatomy and Expressions in Clay
....and his DVD: Techniques of Sculpture: Geometry in the Clay PortraitVia Best of YouTube
More on highlights and specularity tomorrow.