I first saw these sweet tiny folks in a Waldorf classroom.  They are super easy to make and provide wonderful play for a crisp Autumn day!

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You will need the following supplies:  a strong tacky glue, walnuts, acorn caps, 1 inch wooden balls with an 1/2 inch hole (I used what I had on hand but it is nice to pick a wooden ball in relationship to the walnuts you are using), 1 inch wooden discs and scrap pieces of woolen cloth (I used clothing from a thrift store).
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Step One:  Squeeze a dollop of glue on a wooden disc.

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Step Two:  Place a walnut on the disc so that it sets securely. This is the plump body!
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Step Three:  Apply glue to the edge of the wooden ball and set on top of the walnut.
This is the head.
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Step Four:  Pick out an acorn cap and apply glue to the outer rim of the cap.
Place on top of the wooden ball as the hat.
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Step Five:  Cut out a small rectangle of cloth.
Hold it up to the walnut figure to estimate size.  I like to round the corners.

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Step Six:  Using a running stitch, gather the cloth.
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Step Seven:  Tie thread around the neck of the walnut figure.  It is simple to make trees by gluing pine cones to a wooden disc.  Look for pine cones with a flat bottom.
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Here's a little fellow with a cape that is not gathered.  Have fun!