I love making stocking people! My art teacher makes really cute ones... mine doesn't compare, but here it is, anyway:
All I did was take an old knee-high that didn't fit and cut the top off. I used cotton batting (you can use the insides of an old pillow, if you want, or even cotton balls) to stuff the toes and leg. I made it into a round shape, much like a potato.
Then I tied up the top. I sewed into it, making a round nose. Next, I drew on facial features using a sharpie. You can attach googley eyes, yarn for hair, or a button for the nose. Be creative! My art teacher has an Elvis one, a leprechan, a santa claus, etc. The list can go on and on.
You can even make really little ones and attach them to pin-backs and add cloth decorartions. My art teacher did this and they looked really cute!