First of all you will need to make a template for the cup. You will need a circle <a href="/photos/crafty/cupcake/cupbottomtemplate.gif" target="new">[template]</a> for the bottom and a long rectangle strip <a href="/photos/crafty/cupcake/rectangletemplate.gif" target="new">[template]</a> that will fit around the circumference of the circle. Take a piece of felt in the colour that you would like the cup. Then draw out the shapes from the templates on to the felt.
Take a piece of thread in a colour matching the felt and using a hemming stitch sew the rectangle along the circumference of the circle.
Sew the two pieces together until you have something that looks like this.
Now sew down the open side.
Find a piece of foam that will fit inside comfortably.
Now take the felt in the colour that you want the cupcake to be and cut out a large circle <a href="/photos/crafty/cupcake/cupcaketemplate.gif" target="new">[template]</a>.
Wrap the felt circle around a piece of foam making sure that it fits nicely.
Place this inside the cup you made earlier and pin in place. Sew the cupcake in place using a running stitch.
Now cut out an icing shape <a href="/photos/crafty/cupcake/icingtemplate.gif" target="new">[template]</a> out of the third piece of felt. Find some thread that matches the colour. Sew the icing to the top of the cupcake using a hemming stitch.
Find a small red piece of foam. Sew this to the top of your cupcake. This is the cherry.
I sewed little beads to the cupcake to look like sprinkles. You can add eyes or whatever you want to decorate it. I choose not to add eyes because I would be using it as a pin cushion and it would make me feel cruel.