This isn’t my idea originally, but in the stores they cost $100, I made mine for $5. It’s all hand sewn so you won’t need a sewing machine.
Fabric - The easiest is to use a blanket. A thick wool blanket is best. I used a fleece blanket from Ikea. Colors used originally are blue, red and gray.
Yarn - The color doesn’t have to be the same, it’s nicer if it gives a little contrast.
Buttons - Two buttons in wanted color and size.
Since I used a fleece blanket I put it double before I put on the pattern. If you use a thick wool blanket this isn’t needed, but you should still do the stitching as it’ll look nicer. Draw a pattern and pin it on. I kept the pins in while sewing so that the fabric pieces wouldn’t move out of place.

Once the pieces are ready you can start with the stitches. It’s up to you what you think is nicest. I used something called blanket stitches. This is fast and easy and looks nice. You don’t have to be too careful about having it looking perfect either. Stitch around all the edges.
Once you’ve stitched the pieces you can sew on the buttons. Then all you need to do is fasten the head to the body. Leave the ears free.
You can use the pictures of my pattern pieces below (click more) to make an approximate pattern. The width of the scarf is 23 cm (about 9″) and the length is 150 cm (about 59″). The head is 17 cm wide (about 6.5″) and 18 cm high (about 7″). You don’t need a pattern between the upper body and lower body because it’s all one straight line. You can just cut from one end to the other without marking it up before.
You can make this in one night but it may take more like two. These are perfect christmas gifts.
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