My mother used to make these for me when I was little. I loved them. They are a very old design and women used to make them for their little girls to keep them occupied in church!
You make them with Hankies, some cotton balls and thread. I like to make a bonnet for them so they don't look like ghosts. These are great for keeping in your purse/diaper bag, and they only take about 10 min. to make. It's also a fun way to use Granny's hankies. You can also make these out of sweetly trimmed vintage pillow cases. Those are more "rag" doll type, and they are so adorable when finished, and make very special and inexpensive gifts for little girls!