First, you create the book using just a normal LaTeX approach, letting pages reformat according to the normal way. You will want to make your pages of an appropriate papersize and such. Here, with book.tex, given below, it creates a 26 page document book.pdf, with a letter on each page. If I needed to insert an extra page midway, or remove one, just let LaTeX do it.
Because I knew the result was to end up as a small book, I made each page 3" by 3" in this book, though it will be eventually shrunk by a factor of 2 for your small book (though that is not necessary for the process... it's just the way I did it.).
\documentclass{article}
\usepackage[paperwidth=3in,paperheight=3in,margin=.5in]{geometry}
\usepackage{graphicx}
\newcommand\makebook[1]{\makebookhelp#1\relax}
\def\makebookhelp#1#2\relax{%
\scalebox{15}{#1}\clearpage%
\ifx\relax#2\else%
\makebookhelp#2\relax\fi%
}
\begin{document}
\centering
\makebook{ABCDEFGHIJKLMNOPQRSTUVWXYZ}
\end{document}
Now, that I have my book created in the normal way, I assemble it (in this case, on letterpaper) in the right order using this MWE:
\documentclass{article}
\usepackage[paper=letterpaper,margin=1.25in]{geometry}
\usepackage{graphicx,ifthen,stackengine}
\newcounter{bookpage}
\fboxsep=-\fboxrule\relax
\newcommand\nullpage{\fbox{\rule{0pt}{1.5in}\rule{1.5in}{0pt}}}
\newcommand\showthepage[2]{%
\protect\fbox{\protect\includegraphics[width=1.5in,height=1.5in,page=#1]{#2}}%
}
\parindent 0in
\setstackgap{S}{0pt}
\begin{document}
\Shortstack
{
\showthepage{2}{book}%
\showthepage{3}{book}%
\showthepage{6}{book}%
\showthepage{7}{book}
\showthepage{10}{book}%
\showthepage{11}{book}%
\showthepage{14}{book}%
\showthepage{15}{book}
\showthepage{18}{book}%
\showthepage{19}{book}%
\showthepage{22}{book}%
\showthepage{23}{book}
\showthepage{26}{book}%
\nullpage%
\nullpage%
\nullpage}
\clearpage
\Shortstack
{
\showthepage{8}{book}%
\showthepage{5}{book}%
\showthepage{4}{book}%
\showthepage{1}{book}
\showthepage{16}{book}%
\showthepage{13}{book}%
\showthepage{12}{book}%
\showthepage{9}{book}
\showthepage{24}{book}%
\showthepage{21}{book}%
\showthepage{20}{book}%
\showthepage{17}{book}
\nullpage%
\nullpage%
\nullpage%
\showthepage{25}{book}}
\end{document}
It creates a two page document consisting of the 26 panels (1.5" in size) of book.pdf, assembled in such a way that, once cut, pages A-B-C-D will be on the first minileaf, E-F-G-H on the second, etc.
If your binding arrangement is different than that shown above (where minileaves did not get nested prior to binding), merely rearrange the order of the \showthepage invocations to get the desired layout. Once you set up the layout for a single piece of paper (that will be cut), I did not do it, but it would be trivial to implement a "leaf offset" into the execution of \showthepage. That way, a collection of (in my case, 32) invocations of \showthepage could be bundled into a single macro, and that macro could be reinvoked successively with an increasing "leaf offset" to handle larger documents seamlessly.
Here are the two pages that result from the second compilation. When printed with double-sided printing, it all matches up.


flowframpackage is mentioned; another package that supports continuation of text "somewhere else",jumplines, has recently appeared on ctan, but i know no more about it. – barbara beeton Feb 20 '15 at 17:16