I recently bought a package of Derwent brand "Inktense" watercolor pencils. They're not cheap, but through a local "back to school" sale, I was able to get 30 % off, and I've wanted some of these for a long time, so I splurged.
Unlike other watercolor pencils, these aren't made of graphite; the "lead" is made of water-soluble ink. The colors that wash out when you apply water are so much more vivid and intense than any other watercolor pencil I've ever played with. Even before I brought water into it, these are among the best colored pencils I've ever used.
Here's a (what else?) dragon that I did as experimentation. Each wing panel has a slightly different color/brush/technique combination, 'cause I really wanted to play around with these things.
The verdict? Derwent Inktense watercolor pencils:
I'm off to play some more!