I love to decorate containers for all the homemade candy we make during the holidays. I purchased this at a garage sale, because I wanted to make more of them for gifts.
It is 2 paper mâché boxes stacked together and glued. Make the hat with a sleeve of a sweater tied with ribbon or yarn and the turned right side out and glued to the lid. The nose is a felt cone, the scarf another sweater scrap, the arms 2 felt tubes topped with sweater scrap cuffs and little felt mittens.
You could cover them with felt instead of painting and I think it would be adorable.