Using the white felt, cut 2 pieces into 5-inch squares. Glue 3 of the 4 sides together and fill with poly-fil. Then glue the 4th side closed to make a little pillow.
Draw a 12-inch square on each of the two T-shirts and cut out the two squares. Lay on top each other.
Cut slits 2-inches long and 1-inch apart all around the square. Cut diagonal on the corners—see photo. Tie strips together as shown. Tie strips on 3 of the 4 sides. Then slip pillow inside and tie the 4th side closed.
Cut a tooth shape from the white fleece. Glue to the top center of the pillow, leaving the top open to place your child's lost tooth.
Draw a mouth with the red fabric paint. Glue wiggle eyes in place and draw eyebrows with black fabric paint. Let dry.
Can recycle old tee shirts for this project as well--perhaps the T-shirt your child wore when they lost that first tooth!