Do people still make hand drawn maps? What if any tools do you use to draw them (stencils) ? How do you go about making the adventure for the map? And where do you find a key/legend?

I hand draw battle map on lamented black and white printed grid (1 inch squares) maps one for interiors (texture is stone like) and one for exteriors (texture is like grass). I intend on starting to use a straight edge (or ruler) and a string based compass for drawing circles. That way the maps look nicer.

Really it's all a matter of how much of the map you want to be your own creativity vs using map components made by someone else to build your maps. I've seen a few advertisements for map making software but felt paying hundreds of dollars to make maps quite price gouging. Especially since I could just cherry pick freely available images online and cut and paste compile a map if needed using editing software.

Making adventures for a map all depends on how much adlib you want to do. If you are good at on the fly story telling you only need to have a few things prepared ahead of time. Otherwise have contingency details for every possiblity your players may take. Map key or legend I typically don't use and simply point out spots on the map as I narrate the scenes.

I still hand draw maps using paper in pen or pencil now and then. Mostly use photoshop now. Just be creative about it. look at others work or even just look at other fantasy maps found all over the net. 

I freehand both battle maps on one inch grid and also my large area maps for my own reference. Names, roads, coasts, terrain features. Taking my time I can make a 8.5x11 map in about an hour and a half. It is soothing to be able to sit down and watch ones world take shape.