I play it sometimes, not much.
When I do play, I usually do something like this:
Step 1: Generate until I get a world with a giant cactus hill nearby
Step 2: Chop cactus
Step 3: Chop wood
Step 4: Craft logs into building wood
Step 5: Find island or small location
Step 6: Build house
Step 7: Put cactuses everywhere, and add a hole near the entrance so only lucky mobs or players can do the precision jump required to get in
Step 8: Sleep
Step 9: Go out and get resources so that you can craft more stuff
Repeat step 9 to nine until you have a lot of armor / weapons
Step 11: Go searching for more materials
Step 12: Make bigger deluxe house
... The first time I fully did this, I hiked too far and then I couldn't find my old house anymore.