Steps:

1. Create a tassel, by winding yarn on the 5-Inch step of the Tassel Tool, until it is nice and full.
2. Cut 12 inches of yarn for a hanger.  Slip the hanger underneath the wound yarn, and pull up to the top of the tassel.  Tie in a tight knot.
3. Bind the neck of the tassel through the slit in the tool with wire.  Then cut the loops of the bottom of the tassel.  Gently pull the tassel from the tool, then tighten the wire around the neck of the tassel.  Trim off the wire and bend the ends of the wire back into the tassel.
4. Set aside the tassel. Trace around the character sticker, to create a pattern. Cut out the pattern from felt.
6. Peel the protective plastic from the back of the sticker, and place over the top of the tassel to adhere.  Turn over.  Glue the felt cut-out over the top of the tassel and glue along the edges. 
7. Hang on a gift package, or use as a party decoration!