I use 16oz cups. For reference, if you're "conversion impaired" like me...
16oz = 1 pint
32oz = 1 quart
68oz = about 2 liters
128oz = 1 gallon
My potting environment of choice is a clear storage bin. I built a wooden frame with wire mesh over it to raise the cups off the floor of the bin. I keep my bin mostly sealed with the lid on. I keep my bins away from direct sunlight, in a sunny room.
I root my cuttings in 16oz clear cups. The cups have eight 1/2" holes burned into them - 3 holes around the middle of the cup and 5 holes in the bottom (the pattern matches the 5-dot pattern of dice). Inside the cups, I use a mix of about 75% Perlite, with 25% of my favorite non-fertilized potting mix (Fafard 3B). I do not use any fertilizer on my cuttings while they are in the bins - cuttings have energy stores inside, all they need is humidity (water + air) to root and grow vigorously. The 25% of potting mix contains enough nutrients to carry the plants over for several months once they get to that point.
You also noticed the 16oz red cups. Roots do not like sunlight. The red cup is used to hide the roots from sunlight once they leave their home in the bin. The red cup has the bottom cut off so the clear cup is still able to drain freely. By removing the bottom of the red cup and leaving the sides whole, the 3 holes in my cup are covered, while the bottom is not. This stops evaporation from the 3 holes in the middle of the cup which means I need to water less when the plants get sunlight. Watering newly rooted cuttings is a dangerous task, so I want to do it as little and lightly as possible - it's really easy to drown newly rooted cuttings and/or keep them so wet that they rot (mold).
When the clear cups show good root growth, I take them out of the bins, "sleeve" them with the bottom-less red cups, start them on 1/4 strength root stimulator and gradually adjust to part sun exposure. After good top growth has started (like you see in pics above), I use 1/4 strength of a liquid fertilizer with a ratio of 3-1-2 (12-4-8 is normal). This usually ends up being a few drops per gallon of water.