I've thought a lot about this. Home made bills with a QR code is obviously the best way to do it, the holograms are just over the top and completely unnecessary imo. They're only good as a collectable item and exchange between friends, not for real world trade.
I remember a thread not long ago where some one had submitted some nice paper bill designs, can't be bothered looking for it though. It would be very easy to print your own bitcoin bills, so I think this is the best way to do it.
It would be a good idea to have a way to secure the priv key or a secure container for the paper coins themselves. Prying eyes could get them in advance. It's feasible to make a physical wallet booklet that takes a common sheet of paper and folds/perfs it into it into checks quickly.