Below is the link to instructions for making pin cushions using an old teacup and saucer.. I thought the suggestions were helpful...concerning use of polyester vs fine grade of steel wool. I have assembled some cups and saucers to make some of these for gifts and I purchases a bag of steel wool pads for this specific use. The author had some good ideas.
http://www.sew-whats-new.com/projects/t-cup-pin-C.shtml
June in Cincinnati