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From iManuFatti:

With Christmas coming, all the elves are busy making toys
Ready for delivery to all good girls and boys...
~ ~ ~ 

Suitable for beginners as well as skilled crafters, this very easy-to-follow pattern has step-by-step instructions and plenty of pictures. It includes sketches of the stitches used, links to useful websites / suppliers and a list of materials and tools required, which are mainly felt, stuffing, threads, needle and scissors.

The elves in the photos are completely hand sewn out of felt - no sewing machine involved. 
The tiny embroidery is made using baking (parchment) paper technique and the embroidery patterns are very simple and easy to make, so it's the perfect project to try out / train your embroidery skills! You'll enjoy it even if you've never embroidered before!

Extras needed for this project: green crochet cotton thread, black round glass beads (4 mm), pink powder blush, natural white felt ball (1.5 cm), three red / patterned buttons (1 - 1.5 cm)

A finished elf is approx. 13.5 cm / 5.31" tall and 9 cm / 3.54" wide (without ears)