In Libretto 2003:1 our Chief Examiner, Clara Taylor, asked for tips on how to incorporate theory into lessons.
Why not continue the debate here...

For myself, i find it important to keep the theory relevant to the practical so this may mean the legit 'Eric Taylor' approach may not always be the case. If i'm teaching jazz or pop music to my students i lean towards the LCM 'Popular Music' Theory which deals quite extensively with Blues and pentatatonic scales very useful when handling improvisation development espaically when used in conjunction with Aebersold backing tracks.

I think that the Taylor Theory Workbooks are excellent in making sure that all the topics in the syllabus are covered. It doesn't take long, though, after a certain topic has been covered, to point out features in the score relating to it and ask the student questions.

This reinforces what they have learnt in the exercises by showing them that 'it really happens' and also makes them feel that they have a greater grasp of the material in their pieces. Simply focussing attention on certain points can help to alleviate or even solve problems!

I use Taylor work books, Chester music theory flash cards, a computer program called Crotchet Beat, musical dominoes, various other flashcards and musical instrument CD Rom.
I love theory!

As well as using the traditional ABRSM Theory workbooks amongst others I always try to discuss and analyse the music being performed by my pupils as much as possible. This usually involves simple questions and the writing out of Key and Key Signatures, dynamics, tempo markings, Italian terms, style of the music, Form, harmonic structure and intervals etc. It is so important, even at an early age, for pupils to get into the habit of analysing and understanding the music as well as just trying to play it. Presented in a simple way at first, analysing any played music will become a natural habit and way of understanding all music that is played in the future...an approach that should also assist them in their performances.

Gae

I try to work through the Maureen Cox theory books along side the practical grade. They complete a set of papers after finishing these books, the first couple with help and the last few under exam conditions.

I agree with Gae that you should talk about theory throughout your practical lesson as well so that they can relate the concepts to the music they are actually playing. To continually look for keys and key signatures is very important.

As raised in a different thread, there is so little time to work through books and papers when working in schools (group teaching or 15 minute lessons!) and so talking about theory during the lesson is about all you can do. It is much easier to cover it more thorougly with private teaching.