Wanna make your own felt letters? Well you're in luck folks! I just happened to put together a little tutorial for ya!
First, print out the whole alphabet in a bold 3 inch sized font. I even printed mine out in orange as to conserve my precious black ink. Cut them out and arrange them on the felt so there is a 1/4 inch gap between them for cutting.
Sorry if it's hard to see (crappy indoor camera shots), but next outline the letters with a pen. I used a regular ball point pen because it will be covered up later with fancy pantsy embroidery, but you should probably use a sewing pen with washable ink.
Then sew along your pen line, but leave a gap so you can stuff it later. Don't forget the inside of your "O"!
Cut your letter out with a small small small seam allowance so your stitches don't bust. Don't forget the inside of your "O"!
Stuff it, sew the gap left for stuffing closed, and VOILA! Pretty felt letters! It might also be a good idea to make doubles of the commonly used letters or extra letters you need to spell your child's name. Have fun!