Trace a fairly simple cookie cutter (such as a teddy bear, gingerbread man or dog bone like in the photos) onto felt. Do this twice - you need a back and a front. (I used permanent marker because it was the only thing I could get to show up enough.)
Cut out the traced designs. You can straight stitch a design on the right side of one of the pieces or use fabric paint to create a design. If using fabric paint, let dry fully according to the directions on the bottle before going on.
At this point you can choose to layer a piece of batting (cut into the same shape) in between the two pieces if you would like a plusher finished product. Layer the pieces together (right sides facing out) so the sides line up as best as they can. Pin layers in place. Using floss thread in a contrasting or complementary color, (leaving a beginning tail about 2-3 inches long)sew a simple blanket stitch around the entire edge (making sure you end with another tail about the same length).
When you get back to where you started, use the starting tail and ending tails to tie a knot as close to the felt as possible, then tie another knot at the end of the tails to form the loop you will hang your ornament with.
Notes: - If you have a younger sewer or if the blanket stitch proves to complicated, a simple straight stitch around the edge will work just as well - These make great cat toys if you omit the loop and stuff with catnip. - You can also recycle old fabric from clothes - I used denim from an old pair of jeans to make mitten shapes. - These make GREAT teacher gifts! But PLEASE, as a teacher myself, I beg of you - NO APPLE or SCHOOL designs!! We get way too many of them! :)