That depends on your personal circumstances, how much you're exchanging and maybe where you live as well.
If you're looking for convenience in an urban area, a
Bitcoin ATM might be a good idea, although the fees could be a bit high. You could also try an online exchange such as
Bitstamp or
BTC-e if you're looking to do it at home, but if you want
cash in hand literally then that won't be the choice for you.
If you're looking for anonymity, the best way is probably to go on a P2P exchange where you can meet in person - the biggest of which is
Local Bitcoins, and you could do a cash transfer in person.
Do not use these exchanges to exchange Bitcoin online, especially not with Paypal, as chargebacks can occur. Also make sure to meet in a public place with a trusted buyer.
In-person exchanges might be best if you're selling a lot as it'll stop fees from third parties. Although to be fair the fees with online exchanges aren't necessarily a lot, but it'll be as a percentage so if you're selling a large amount it could be annoying.