For Fallacy I do thumbnails traditionally with a pen on normal printing paper. I love the freedom of being able to sketch things out anywhere.
After that I scan the thumbnails and get to work with Clip Studio / Manga Studio (which ever you want to call it). I did buy some extra brushes for it tho, as I have no idea how to create those by myself and I wanted somet hat mimic traditional watercolors.
I use Wacom Intuos Pro as my drawing tablet and I'm quite in love with it. I used to have an old, crummy Trust tablet but it broke and I'm actually happy about that as I had to buy a new one. :'D I also used to use a combination of SAI and Photoshop but thankfully now I can do everything with one program.
When I work traditionally I either use micron pens or liquid ink for inking and coloring is usually done with watercolors. Sometimes (very rarely) I also work with copics or crayons.