First google 'Sugar Skulls' Or 'Day of the dead' This can give you inspiration and give you a good colour scheme. Or just make it up as you go along like i did :)

Now draw a template of a skull on paper. Lay it on the felt and cut out. Make two.

Mouth:
Draw a rectangle with two triangles on the end in pencil. Backstitch in embroidery thread around the outline. Add teeth and fill them in with white paint.

Nose:
Paint a triangle for the nose and add two white dots for the nostrils.

Optional: Mix a little bit of glue with the paint and add glitter.

Eyes:
Paint the eyes a plain colour in a circle. Add sequins in the middle. (I used googly eyes :D )

Optional: Add a wavy outline to make the eyes look like flowers.

Decoration:
Most sugar skulls have decoration on the cheeks and forehead. The most common decorations include flowers. Just make it bright and colourful :D

Optional: Beads and glitter will make it stand out more.

So far... <--

Sewing:
Use blanket stitch to sew the two pieces together. This is a good stitch to use because it is strong and adds detail.

Leave a gap so you can add a little bit of stuffing to give it more of a 3D effect.

If you want to hang it up add up little loop of embroidery thread at the top.

Finished! :D