All you need is a pinecone, wood ball for the head, small wood ball for the nose (or a big round bead), felt for the hat, fuzzy material for the hat brim, some sort of fluffy material for the beard (think pillow stuffing, fleece, yarn, cotton ball), hot glue, and a needle and thread to sew up the hat (I bet you could just glue the hat if you don't want to sew it!).
I made the hat just like I did for the elves (click here for that post and better directions); cut a tall skinny triangle from whatever color felt you want (make sure it's wide enough to fit over the larger wood ball once you've sewn the triangle into the hat), sew up the sides to create an upside-down cone shape and hot glue onto the wood ball for his head. Add a small strip of fuzzy material around the base of the hat, covering about 1/2 of the ball. Hot glue a small wood ball on for the nose - note, I didn't have a small enough wood ball so I used a round bead instead. Glue the head in place on the top of a pinecone, you might need to snip out some of the center of the pinecone to give the head a solid place to sit. Glue on a wad of pillow stuffing or a cotton ball (or some other fluffy material) for the big beard. If you want to hang him, sew on a piece of embroidery thread or light twine to the tip of his hat.
inspiration for this project found here