In town (under 40 mph in a gen2 not sure about the C), the Prius is far better off using P&G. Doing so is incredibly simple. The engine will run until it is warmed up. Then, simply accelerate up to desired speed, let off the gas pedal, then slightly apply a tiny bit of gas again. The engine should die and you're coasting. When you're ready to pulse again simply press down the pedal more. Rinse and repeat. Its very pretty easy to hit 100+ mpg in my gen 2 using this technique.
At speeds higher than 40 mph I almost always just set the cruise and go. There are some techniques out there to improve highway mileage, but I haven't had luck with them. Cruise always seems to be able to beat my foot (not by much, but it does) and its much easier on long trips to just use the cruise.
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