Secrets of wool-felting masters (the entire site is an amazing resource for all things felt! Lots of inspiration there!) Please note safety issues...use a circuit breaker, minimal water, waterproof barriers or better still go cordless!
ROSIEPINK gives you a tutorial on how to make a felt pod. (Start with a little bowl, but then think CAT CAVE!) Well-illustrated, very thorough, and points out how to deal with the common pitfalls. One big trick: You work it as a flat disk with a piece of resist in between the two layers!