I purchased the plain white onesies at Target and began cutting the color felt into a basic cupcake shape. Once the pieces were cut, I used a small amount of craft glue to hold the image in place while I sewed around the cupcake. You can use a variety of different stitches to add flavor to your cupcake;) I used the blanket stitch and basic straight stitch for mine.
The bear was made with wool roving using a felting needle. Here is a quick time lapse tutorial on needle felting a bunnyI found to be useful and fascinating. http://www.youtube.com/watch?v=S0ycwVZ4GOE&feature=related
wrapped up and ready to go!