Recently I came across a site that showed how to cover letters with yarn. Really, I didn't need instruction because well, it's not difficult to cover a letter in yarn.
This would have looked SO much better if I'd used the wooden letters you find in the craft section or even the boxy, cardboard letters. However, I had some cardboard boxes about to go to the trash so I utilized those instead.
If you're going to buy the letters, it will save you the troubling steps of drawing/tracing letters from the cardboard pieces. Who am I kidding?? The most difficult part was the cutting! But if you decide to recycle, this would be the first step.
The next step is to wrap the yarn around the letters. The ones I have seen online were wrapped in a much neater, fancier, straight line than what I chose to wrap mine. If you use a solid colored yarn it would probably looked best wrapped in a straighter fashion. However, I used a multi colored yarn so I wanted a messier type wrap look.
When you are satisfied with your look, place in desired locale and enjoy!