If you have some wool felt, you can cut it out and have her sew it (I'd use a tapestry needle) together - shape of your choice - a star, teddy bear, heart, stocking, etc. Stuff it w/whatever you have on hand! Different texture/feel with different stuff.
My 5 and 7 year olds made felted balls for their little brother. You can find directions on the Martha Stewart website. It's easy, can be done in maybe a half hour, and the result is a nice, usable baby toy.