ROSIEPINK gives you a tutorial on how to make a felt pod. (Start with a little bowl, but then think CAT CAVE!) Well-illustrated, very thorough, and points out how to deal with the common pitfalls. One big trick: You work it as a flat disk with a piece of resist in between the two layers!
Artist Lisa Jordan makes these beautiful brooches by needle felting wool, and then implementing it to a found piece of oak. Her work is magical, because it is like you are viewing a mirrored reflection of the woods where she lives nearby.
Orange Felted Wool Acorns or Acorn Ornaments, Set of 12