That's the way I've cloned mine in the past, th3. Once I see the "nubs" of what look like emerging roots, or something that can positively identified as a root, I cut the clone into peat. Jiffy pellets (little water-expandable discs of peat) work perfectly for this purpose, and they can be found at virtually any garden store. They expand around the clone, and enclose it in a nutriet rich, contained environment- you'll know when to transplant when you see the roots poke through the outer nylon layer. Although straight peat or soil even works- just keep it moist when you transplant.
Good luck!
~Ethno