I've made a number of these felted sweater cupcakes using instruction from the book Warm Fuzzies: 30 Sweet Felted Projects. It was fun! My kids play with them all the time.
Here are a couple of samples which sit by my computer...temptation without the calories!
I used 100% wool sweaters for the one above. Felting them was a breeze!
The one beside was made from an acrylic sweater. While it is fun and shiny, the material did not hold it's shape well. Still turned out cute!
Now if only there was a cherry on top!