I had an itch to make something along these lines.
I had no pouches or anything and it was starting to get annoying with all pockets and stuff so I made these two. Albino Domo(which I was upset that I didn't have enough brown felt) and the all new (instead of pocket monster) hip monster!
Cut a rectangle and sew together accsessories and sew THOSE on. (eyes,mouth,headpiece,ect.)
Somehow attach the yarn to make some sort of sash with the yarn.