The flanel fabric or also has other name as felt is often used for craft material like wallet, doll, tissue box, bag and so on. This fabric has soft texture and quite thick. It has many colors. Here is an example for letter case from that fabric. The pattern is shown below.
After cut the felt fabric follows the pattern, then join them. The A pattern is joined with B pattern using feston stitch and the B pattern is joined with C pattern using stitch. Then after that stick the other parts like eye, ribbon, nose and so on. The top part is stitched too to make a hanger place. Then insert your stick to this hole then tie a rope at the tips.
Here are the patterns:

Thank you for sharing. I have same hobby, making crafts from felt
nice felt
nice felt opject