Here is the finished product. Reminds me of those wonderful (and very breakable) ornaments my grandparents had when I was little. You know, the ones with the little scenes.
So to start you need to make the wool shell. I used white wool roving but I'm sure it would look great in any color. The process I used to make the shell is called wet felting (which I don't have pictures for).
I wrapped the wool roving around a symetrical rock that we found in the yard. Wrap the wool as evenly as possible, otherwise it will come out lumpy in some spots and thin in others. After you have wrapped the wool around the rock you wet the whole thing with warm water. Add a small drop of dish soap. And then the fun part is rubbing (felting) the wool. I vigorously rub the wool with my hands so that it's very soapy.
You will start to feel the wool shrinking and that is when you know the felting process is working. I rinse the whole thing under the faucet. Squeeze out the excess water. I then place the rock/wool in the sun for a day or so to dry.
The next day once the wool is dry I just cut an oval in the wool, easily done with kitchen scissors.
At this point you can remove the rock and gently reshape the wool.
All that's left to do is pick decorations for your little scene. I found miniature trees etc. at our local craft store. I'm going to look for some mini deer to add for the next one.
When I finished I threaded a small bit of yarn through the wool at the top. This way it can be hung from the tree!
If you try making one of these I would love to see a link/picture!