I saw a ring version of this over at Camilla's a couple months back and I thought it would make a quick, easy stocking stuffer for a crafter. Here's a short tutorial for a wrist version (sorry about all the dark photos):
Plastic beverage cap (I used a 1-3/4 inch diameter Gatorade cap)
Rubber hair bands
6 inch diameter circle of fabric
1. Drill 2 holes along the equator of the plastic cap large enough to string the rubber hair band through.
2. Cut a piece of hair band long enough to fit snuggly over your wrist plus approx 2 inches (for tieing off). Knot one side of the hair band several times and then string through the hole in the cap from the top.String the end of the hair band up into the cap and tie off with a couple more knots.
3. Sew a running stitch along the edge of the fabric circle. Gather and stuff to desired firmness with poyfill.
4. Place hot glue into plastic cap over rubber band knots and along rim of cap and then place stuffed fabric circle into the inside of the cap.
5. All pau!