Well I was thinking the exact opposite of using a GSM Module and connecting it with my PC and using an Android emulator i dont know if or how that would even work but sounded like a good place to start. What do you think.
This might get you an awkward way to make phone calls or use a mobile data connection, but it would be a fairly small and un-representative part of the task of making an android phone. Assuming you are buying a module and not putting bare RF chips on your own board, most of the work has little to do with telephony, and a lot to do with getting the software and drivers running on your board and talking to all of your other peripherals, dealing with power management, etc. By using the emulator, you miss diving into that core challenge - of the peripherals the GSM module is actually pretty simple and standardized in that it's likely a serial port plus an analog audio channel.
Something you can do at basically no expense is to download the Android sources (either AOSP or a popular alternative ROM, which may be more complete), examine them to get an idea of what you are up against, and go through the process of building and installing them on an existing phone.