Different types of blanket stitches - photo instructions
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I would try: Mini wooden letters, use the exact same idea, maybe add some cotton balls & felt for texture, hot glue a mini Santa hat on some of the more "edge-ier" letters, and use a satin or silk ribbon to hang up for decorating ;)
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Updated Pony Plush Pattern by CaveLupa.deviantart.com on @deviantART
For old burned out light bulbs make them into a Christmas ornament.
Gingerbread Girl ♥
9148005466601535 Twine Star Decoration using paint sticks! beautiful and simple
不 织布 龙猫.