What you need:
White toddler-size tube sock and matching thread
Polyester fiberfill (or cotton balls, which is what I used)
Buttons (small, two black, three others)
Fabric glue
Red child-size ribbed sock and matching thread for hat
Pom Pom
Black pipe cleaners for arms (I used white because that's what I had and I just wrapped it in black yarn)
Ribbon or a scrap of fabric for the scarf
Large embroidery needle
What to do:
Turn the tube sock inside out and stuff with fiber fill/cotton until full. Gather the sock at the top and sew closed. To form the head, tie off the ribbon/fabric. If you want to make his head larger, just tie of farther down the sock. Glue on the buttons to make the face. To make the hat, sew on the other sock, rib side down. To make a smaller hat, cut off the top of the sock and sew back together. Glue the Pom Pom on top of the sock hat. Thread the pipe cleaner onto the embroidery needle and push through, cut pipe cleaner and twist to make fingers.
Ta-da! All done! To make it an ornament, just thread through on the top to make a loop. :)