Cut the shapes out and trace onto felt with a white fabric pencil. Cut out all of your shapes - two of the stocking and two of the stocking "cuff."
For a decorative edge, I cut the bottom edge of the "cuff" with scalloped scissors (pictured). You can also try pinking shears.
Lay out your felt pieces.
Begin sewing the details (holly & berries) onto the cuff. Use embroidery floss in a matching or contrasting color.
Sew the 2 stocking pieces together using the blanket stitch.
Start by bringing the needle up through just one of the layers of fabric.
Poke the needle down into the fabric, right next to your previous stitch. This stitch should go through BOTH layers of fabric. You will be left with a small loop of floss, leave it a bit loose (in the shape of an arc).
Stitch the needle right through the center of the loop and pull tight. Start again by poking the needle back down through the fabric, next to your previous stitch.
This is what your blanket stitch should look like:
After you finish stitching the stocking, stitch the two sides of the cuff together:
Now, blanket stitch the top of the cuff to the top of the stocking. While you're at it, stitch a loop of ribbon or rickrack into the corner of the stocking for hanging.