These are so cute and would make great gifts all year long. I just happened to watch an episode of Martha and they were making them. They are made from recycled wool sweaters.
http://www.marthastewart.com/portal/site/mslo/menuitem.3a0656639de62ad593598e10d373a0a0/?vgnextoid=4d4fed7957d42110VgnVCM1000003d370a0aRCR D&autonomy_kw=Wool%20Teacup%20pin%20cushions&rsc=n s2006_m1
Here is a picture of them.