First I took two pieces of flannel, you can use the same fabric for both sides or you can use different fabric. Then I made a cardboard template 2", 3". I put the two pieces of flannel on top of each other wrong sides together and cut around the template making fringe all around the blanket. then I took two pieces of fringe that were on top of each other and tied them right over left then left over right. I did that all around the edge and I was done. I made the knots too tight. I should have done it looser so that the edge lays flat. For the pillow I just changed the size of the fabric and stuffed it as I was tying the edges. I used different colors because I didn't have enough fabric from the blanket to make the pillow.