This idea was introduced to me by one of the "wise waldorf women" in our county. Gnomes are made from felted sweater pieces and stuffed with wool roving. The pattern is basically a triangle, with a half circle cut out of each side. Then you stitch them up the front, with an "X" stitch. If you leave a little room at the bottom, you can use it for a finger puppet too! Put it on your finger and sing this little song!
I met a dusty little gnome,
he said we should clean our room,
round, round, round,
whisk, whisk, whisk,
clean our room.