patterned fabric (cotton, flannel, etc)
"steam a seam" or something like it that allows you to iron on fabric
wool felt, lace, crochet, buttons, anything you want to adorn it with.
thread, scissors, iron
this is the stuff I use to adhere the fabric. Of all the kinds I've used, this is my favorite. I got it at Hobby Lobby, but I am sure you can find it other places or on the web.
cut out pieces of the fabric into interesting shapes. I used the pattern on the fabric to guide my shape decisions. I then put it onto the sticky part of the "steam a seam."
keeping the "steam a seam" attached to the fabric, cut around the fabric so the edges are flush.
Cut-out other things you want to add on top. and pin. then sew together (you can sew through the steam-a-seam). TA-DA!!!
HERE ARE SOME OTHER EXAMPLES....