How's it done?

This is what I start with - a mass of wool fibers. I use very sharp, barbed needles that push/pull fibers down into the mass, and eventually....

After poking and turning and poking myself and swearing, I get the general body shape formed.

I repeat the process for the head, and, using my needle, I sculpt the ball into something that looks sort of like a bear, make ears (lining them with white, so they look like ears) and attach the ears to the head.

I sew two black beads in for eyes, add a bit of color for the muzzle, make a nose and mouth out of 5 black wool fibers and attach it to the body.

Arms and legs are next, adding more fleece for over-sized paws, with a bit of pink for the pads.

I added some belly color, attached the arms and legs (again, all done with needles) and this is the result.