Jessica, from Happy Together, put together this tutorial, and says these cloth letters have become an instant hit at her house!
Please don't be intimidated by the quilting aspect of this tutorial, as you could easily adapt it to a simple sewing project. It's also a great way to use up all the scraps of material you might have lying around your house!
You can find the tutorial here. Don't these pictures get your mind spinning with all the projects you could use this for? Birthday banners, Christmas ornaments, gift tags, the list could go on and on...
via IDIY
Another idea:
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