Close-miked, mike to the side of the cone. Brad Gillis' rig design of his home studio for Night Ranger, where they cut demos. In his garage. My friend lived across the street from this house in Sacramento, California, and liked Brad but did complain about sound leakage. A speaker isolation cabinet is a compact repackaging of the 2-room setup of a recording studio.
Isolation is also a key factor.
The recording room should be separate from the control room where the console and tape machine are. Aside from eliminating feedback problems or forcing you to record with headphones on, this allows you to accurately hear the sounds the way they'll actually sound on tape. I have my double-layer iso cab in the basement, with a completely separate control room also in the basement. So an amp as loud as 15 watts is perfectly silent as far as the neighbors are concerned, and I barely hear anything in the control room, just a little low-end thumping when I do chunking metal chords.