Paper
 
Arches Hot Press 300 lb is my recent favorite. It is strong enough that it doesn't have to be stretched. It's also completely smooth so it is easy to draw fine details. It's expensive, about $12.00 Canadian, but well worth it.
For rough sketches I usually use RoyalBrites PosterBoard. I like the 11"x14" size. It has a matte surface and is tough enough to take a lot of erasing. I also use Bienfang Tracing Paper 25 lb. Generally I just pick up both products at Wal-Mart.
Drawing Tools

Staedtler Pigment Liners are great for outlining. They make crisp lines and are waterproof.

 Staedtler Mechanical Pencils are good for shading. They have large thick leads and can be sharpened to a fine point. You need a special sharpener called the Lead Pointer Tub. I use BIC .5 pens, with leads by Staedtler. I love the coloured ones. I have a ton of pencils, everything from 6b to 9h. I also love TUFF STUFF erasers.
Watercolour
Watercolours by Winsor & Newton - I use both the artist and student quality. Sometimes I use Grumbacher as well. They have good quality for a low price. Masking Fluid by Winsor and Newton applied with a pen and nib. I use Gourche, by Winsor and Newton, when adding highlights to watercolours. Delta Creamcoat Acrylic is good for adding highlights to pencil drawings.
Winsor & Newton Series 7 Kolinsky Brush are great brushes that don't wear out. I also use Curry's - Series 49 Round Brushes for large washes. For erasing I stick to synthetic craft brushes by Plaid.