Kids Tic Tac Toe Game Set (or naughts and crosses as we call it!) So cute and a lovely quiet activity as well as portable in the car or restaurant! Easy to make with felt
Owl felt hair clip bow holder, hair bowholder, clippie holder, by Etsy seller "Sweetie Tweetie / Sprinkle Designs"
Fabric lined crochet blanket. This is a really good idea for a couple of the blankets my kiddos received as baby gifts that are falling apart. I can then stitch the parts that are unraveling to the fabric.
Cat Hanging Decoration - Hattifer's hand sewn gifts
Shabby Chic Personalized Lavender Sachet Eco Chic Wedding Gift or Wedding Ring Bearer Hand Sewn $20
Tons of sewn gift ideas
The nice thing about sewn gift cards is that the recipient can re-use them (more easily than a paper holder).