Knitted and felted wool balls from this book. It's a great book, especially if you're just learning how to knit. You could start at the beginning and work your way through the entire book. A tip about the balls: hand felt them instead of doing it in the washing machine as the book recommends. The bottom ball in my photo was felted in the machine and it didn't turn out anywhere near as well as the ones I've hand felted.
Knitted and felted rainbow chain. This one I made up myself with some trial and error. I cast on 6 stitches on a double-pointed needle and made an I-cord until it measured 6". I then sewed them together with the tail yarn and felted them.
Oh, and she loves them all. :)