Check out orderMngr.domain.customer.CustomerTest
in the "jmockit/samples/orderMngmntWebapp" sample test suite, found in the JMockit full distribution.
This test class relies on Hibernate Emulation. It can be run through the "sampleTests" target in "jmockit/build.xml".
My motivation for creating this tool was mainly that SessionFactory creation takes too long when the project has hundreds of mapped entities. (It took about 20-30 seconds in a project with 400+ entity classes.) This in a suite of integration tests, of course. For a suite of unit tests this tool is not useful.
The idea was that a developer could quickly run the integration tests in a local development environment to test business logic but not persistence, while letting the automated build server run the full test suite regularly, without emulation.
Note that HQL queries are still tested when using Hibernate emulation. The fake implementation will parse HQL strings and execute the query against entity instances "persisted" in memory. O/R mapping information is ignored, though.
Mocking DAOs is perfectly valid as well, but then your tests will never actually test the O/R mapping, HQL queries, or actual database access. Using Hibernate Emulation you don't create mocks, but can run the tests over a fake Hibernate implementation that provides something similar to an in-memory database.