I have a friend who made keepsake teddy bears from her mother's clothing, and later from her dad's shirts. She mixed coordinating fabrics on each bear. They were soft and huggable.
My daughter made me a very cuddly pillow from my mother's fleece jacket. Cut off the arms and neckline, squared the front and back, stitched it up. The buttons on the button-up front allow you to open it to take a pillow form in and out.