I think this is my favorite way to use up scraps. It barely takes any fabric and it makes a great toy. My 5 month old is just starting to grab at them and my 2 1/2 year old still loves to play with them.
You can find the pattern to make three different sizes here.
I love to use fabrics with different textures: silky, fuzzy, smooth, bumpy. They all add a lot of character.