I use a couple of white cotton t-shirts.
I take the first one and squeeze it down the length to get excess water out, then I take a second one, put it around my head and let it hang down the back (think of a nun's habit--that's kind of what it looks like, sort of). Then I twist it gently and bun it with two hair elastics or scrunchies. I leave it in for however long I have to get ready, and it soaks up a pretty good amount of water before I take it down. Plus my hair seems less frizzy with the jersey cotton, as opposed to terrycloth.
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