We made these last year for the 22 members of Annabel's Second Grade class.
Ours were a variation of Martha Stewart's no-sew candy cane mice.
Since I had lots and lots (and lots) of white, cotton felt and other fabric scraps (but no craft felt), I decided to double up the brushed cotton bodies and sew them together to make a pocket.
Ittybit glued on the features.
We made them to fit full-sized candy canes, but we could have just as easily made them to fit the tiny ones.