I don't have a lot of experience with sculpting or a full set of suggestions for you, but maybe start the house itself by carving down a block of florist foam and wrapping it in cling wrap. Then wrap gp around the block, maybe securing the top with some toothpicks or pins while it dries?
here's a pattern for a paper model
http://cp.c-ij.com/en/contents/3154/03361/index.html
and if you don't mind only looking at pics:
Pattern:
http://www.city.sakura.lg.jp/web_furoku/parper_craft/liefde/parper/liefde_all/liefde_all.pdf
and the how to:
http://www.city.sakura.lg.jp/web_furoku/parper_craft/liefde/make/make_all/make_all.pdf
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and all words no pics:
http://www.ehow.com/how_6210020_build-model-dutch-windmill.html
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