Felicia of Fluffy Flowers creates the most adorable creatures that are whimsical and creative. You can see her day to day musings over at her blog, or check out her shop, which she just updated with a ton of cute stuff. I really like the way she writes stories for each of her little creatures:
"Winky is made from part of a felted wool sweater. He stands about 4 inches tall and is about 6 inches wide at his widest point. Winky’s only got the one button eye yar see. He lost the other one in a cat fight some time back. He wears his eye patch proudly as well as his bell on a wired ribbon. These small parts mean he is best not given to young pirates."
"Frolic is a frisky little gnome who is ready to do some world traveling. She longs to see what gardens are like in other parts of the country and even the world. Frolic is ready to fly at a moment’s notice."