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Mrs. Elf Leggs! there is a free tutorial on how to create this on my website today stampingwithsandi...
elf hat napkin folding...fold square napkin in half with the edges away from you. Keeping your finger at the midpoint of the fold, roll the open edges into a cone shape, using your finger to keep the point crisp. Then fold up the "brim" just like you would fold up a shirtsleeve. Add a bell or ball to the tip; attach it using a wire to slip down through the center of the cone.