This lovely cupcake pincushion is brought to you from the book "Warm Fuzzies: 30 Sweet Felted Projects." It's kind of a neat little book, as the ideas are all ways to re-purpose old sweaters, i.e. the ones that mysteriously come out of the dryer five sizes too small.
I actually just donated a ton of old clothes to goodwill so I didn't have a lot of sweaters to choose from. Hence the outside of my cupcake is old sweater, but the inside is made from newly purchased felt. (And a cherry on top!)
For further inspiration, check out the Warm Fuzzies Flickr Group. I especially like these little coffees. (And if your library doesn't have the book, there's an instructable for the cupcakes here. Just don't forget to felt (shrink) your old sweaters first by washing them in hot water and drying them.)