Sergiu Pasca from Stanford University has been working on growing brains from stem cells. Stem cells are the initial cells found in growing embyo's that differentiate to form the structures of every organism. A cell can be differentiated (i.e. initiated for a certain task) using chemical techniques and has now been utilised by Pasca and his colleagues to create a remarkably "realistic" rudimentary brain... a few millimeters in length.
Although, this is a far cry from making bio-cyborg engineered humanoids, the research is promising in that it provides a platform to study and model human brain tissue that is normally hard to come by, for obvious reasons! This has obvious ramification for the development of our understanding of neuro-degenerative diseases and brain disorders.
It will take a while to arrive at a something remotely resembling 'normal' brain function. But the research is a starting point, yet opens a whole Pandora's box of ethical issues that scientists have been grappling with for a while, in the hope that once these experiments become a reality we will be better prepared to deal with the ethics.
(Brain image is from the article in the second link, Also found in a google image search!)