The first step is to sew four squares of fabric together in a square.
Then cut the square apart by making cuts on each side of the seams at least 1/2 inch from the seams.
Then rearrange the pieces as you like and sew the pieces together to form the final block.
It's a really easy process to create a block that looks like it took a long time to make!
Here is another step-by-step picture tutorial to make this block from Sew Wonderful.