[@Cyclone]
I use an empty map template off google and put it in photoshop. In new layers I add the terrain, towns, text etc. using custom brushes designed for this exact thing. My favourite is a set of lotr-esque brushes containing trees, mountains and buildings! Very simple.
For the fog of war thing I just have a pitch-black layer on top of everything except the text and reduce the opacity so that it just becomes a 'fog', and then I use the erasor tool to line our the explored area.

It's quite fun!