I would like to give credit to the person who posted this tutorial on how to make them and originally inspired me to make my own version. As usual I very rarely do anything exactly to directions and this project is no exception. Not only did I use different fabrics, but I also changed the way they are assembled, making them quicker and more stable.
I used some strips of fleece fabric leftover from making jumpers and tracksuits for the cake and icing and wide ribbing to make the patty cases. A couple of people have said the patty cases look like socks. I don't see any reason why they could not be used as socks are probably more readily available. My cupcakes are then completed with some pin sprinkles and a pom pom cherry on the top!
(Added 16 Jan 2008) I also just found some like these by Betz White who uses recycled wool sweaters to make her cupcakes. Great idea if you are not allergic to wool!