You may remember seeing charming strawberry pincushions like these in your grandmother's sewing box. Hers were probably sewn from scraps of leftover fabric; ours are made with ribbon remnants, shirting fabric, and felt, which works especially well because its edges won't fray.
Create a busy book for your toddler. Use children's books for ideas for each coloured circle. Put an activity on each side of the circle. Use a colourful button and folded ribbon to help your child to "turn" the circles. Use a hole punch and hold together with a ring as in the photo.