Scrape the wall gently to remove any lumps, such as dried drywall mud or mortar. Sweep away the debris. Mix dry mortar with lukewarm water according to manufacturer instructions -- the ideal consistency should be similar to that of soft serve ice cream or peanut butter.
Load a dollop of mortar onto your trowel and press a thin layer onto the wall where you plan to place the baseboard. The edge of the trowel should skim the floor so that the wall is covered from the floor to the top edge of the tile.
Press the first piece of tile against the wall. Starting in a corner or against a piece of door trim will yield best results, but it's not required. Place a spacer onto the edge of the tile and press the next piece against the spacer. Continue around the wall until you return to your starting point. Cut tile, if necessary, by measuring, scoring the back of the tile with a utility knife and snapping the tile in two.
Mix the grout according to manufacturer instructions and remove the spacers. Load a dollop onto the grout float and, while holding the float at a low angle, guide the float across the tile so that the space between the tiles are filled. Holding the float at an angle will prevent it from getting caught on the tile edges.
Wipe away excess grout with a sponge.