SMILING SANTA HANG-UP

Taken from Copycat Press 1987. http://homemakersjournal.wordpress.com/category/copycat-magazine/page/3/

Materials:
manilla tag board [for reproducible]
red, blue, white, and pink felt or paper
fluffy white craft yard
hole punch
white
scissors

If you have the resources, I would use movable eyes and pom-poms.