I use
Layers. To start off, I'll do an Insert Layer, and hit its
Solo button. Then I hit R to record, and it will record on a new layer. When I hit R again, it will record to another new layer (and I won't hear the previous takes, because of that solo I did originally).
When I'm done, I have a bunch of layered takes, which I can then comp together.
Oh, and I forgot to mention, I have these options set: in Transport->Record Options, under "Recording Mode" I use "Sound on Sound (Blend)". And under "Layers" I use "Create New Layer on Overlap".