I found a very good tutorial online that I used and will probably be making lots of these as gifts in the future! It was about $10 in materials, and an hour to an hour and a half in the making time (today, which included a "helper" for a few minutes and few breaks to start a new playlist of Sesame Street videos). Totally worth both time and money! Here are the pictures:
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Also, to give credit where it is due, the tutorial I used was from the blog Make It and Love It and can be found here.