If you're experiencing the cuttings molding, turning black or gray fuzzy in the wraps, your paper is too wet. Remove the foliage before wrapping as the leaves will mold and begin rotting, leading to the wood rotting. I pot at the callus stage, too, unless they have rooted, then I pot as I would before rooting. And, because I live in a high evaporation environment, I plant them deeply in the foam cups (16 oz.) I use because they are a useful size, readily available and inexpensive (yes, I poke many drain holes in each cup). I cut them to fit the depth of the cup prior to wrapping so when they come out, they fit what I want. Initially, I place the callus about an inch above the bottom of the cup, so when filled, there is about an inch of stem protruding from the soil, then water in well and leave them alone in the filtered to partial sun. It is very easy to slip the whole soil ball from the cup occasionally to see how the root development is progressing. Once the bottom of the cup is filled, I slide out the root ball, place several inches of soil in the cup then insert the root ball into the cup on top of the fresh soil, then gently push the soil from around the cutting into the cup to firm in the roots so the cutting is lifted higher. By starting them off with only an inch or so exposed to the elements, they are pretty much hardened off by this time and usually continue developing normally.
California Central Coast
USDA Zone 9b
Sunset Zone 15
Cooler inland coastal valley with strong marine influence