So telephone pictionary goes like this:
1) You'll need a large pile of scratch paper, cut into quarter sheets. I recommend bringing your own. When you go to a party and ask the host if s/he has scratch paper, a quick search just leads to them cutting up real stuff and it's environmentally depressing. You'll also need pens or pencils but most people have those.
2) Each person takes 5 or 7 sheets, depending on how ambitious you are. We've found that odd numbers really work best. You could technically take one sheet per person at the table, but eh.
3) On the first page of your stack of paper, write a word or phrase that you want someone to draw. Animals are fun, movies or band names come up, logos, cities, etc.
4) Send your whole stack of paper to your left.
5) The person looks at your word, then moves the paper you wrote on to the back of the stack so they have a blank paper to start on. They draw what you wrote.
6) They pass the whole stack to the left. Since your word is at the back, this next person only sees the drawing. S/he puts the drawing on the back of the stack, and on the next blank sheet writes the word or phrase that the drawing depicts.
7) Repeat until there are no blank sheets. So in the end, there's a stack of paper and every other sheet has a drawing, and the sheets that don't have drawings have words. Each person only gets to see what the person immediately before them did.
8) Then you have a rundown... everyone goes around the table, flips through the stack s/he started, and you critique each other's drawings and laugh at the path of interpretations.
So there isn't really a winner per se, but there's usually a round of applause if the stack begins and ends on the same word, especially if that word was something ambitious - obviously "Apple" or "Cat" will make it around, "Gone with the Wind" probably not so much.