If your main interest is production of quality fruit, grafted trees are the best choice and the fastest way (typically six years) to produce quality fruit. Seed obtained from high quality fruit may also produce trees with good fruit, but quality will vary considerably from seedling to seedling. If seeds are planted, they should be removed from the fruit and not allowed to dry out, as this drastically reduces germination.
The best way to obtain pawpaw seedlings is to remove the seeds from the fruit, put these in plastic bags of moist peat moss, and place them in the refrigerator. Pawpaw seeds need about 100 hours of chilling to germinate. Plant these seeds in deep pots (pawpaws have tap roots) and keep them watered. The seeds will begin germinating at temperatures of 60 degrees F, but will take at least a month for a shoot to break the soil surface.
Alternatively, seeds removed from the fruit may be planted in late summer in the garden, receive their chilling over the winter, and begin emerging from the soil the following year. With this second method only about 10% of the seed produce seedlings.
It is best to bud (graft) the seedlings with a named variety to assure quality fruit. Seedling trees take around seven years to produce fruit. Tree growth and fruit production can be dramatically quickened by keeping the trees well watered and fertilized. Apply a 20-20-20 water-soluble fertilizer monthly (for six months) during the early part of the growing season. Shading of the trees with shade cloth during the first season after budding is also very helpful in promoting growth.