We went with needle and thread. He's got the sewing part down well (he's using an overcast stitch as it's easiest for him to do at this point). I just need to help him thread the needle and knot the thread. When he's done I finish it off for him as well, but all the grunt work he does himself.
He's doing an excellent job. :)
The green guy in the middle was his first attempt, but you can't throw him around or cuddle with him. Felt on the other hand loves to be cuddled with. :) And now I'll have some bed time friends when this project is all said and down. AND a fun game to play with the lad. It's all good eh? :)