Things you'll need:
*Scissors or a circle cutter
*If you're using scissors, something circular (between 3 and 4 inches in diameter)
to trace and a fabric pen or pencil
*Fabric
*Coordinating thread and needle
I recently purchased a circle cutter made by Olfa for about $17 with a Joann's coupon. Most craft and sewing shops carry them. Before I had this, I used an upside down cup to trace my circle and cut it out with fabric scissors. The diameter of the circle should be double the size that you want your yoyo to be, plus you need to add an additional 1/4". So, if you want a 2" yoyo, you need the diameter of your circle to be 4.25". Trace and cut out your circle.
Next, thread your needle with a coordinating thread. I like to double the thread, it just feels like it holds up better.
Take your circle and hold it so that the wrong side of the fabric is facing you. Fold over about 1/4" of the fabric and begin to straight stitch around the circle, folding in a little bit as you go. Stitches should be about 1/4" apart. The knot at the end of your thread should be facing you so that when it's finished, it is on the inside of the yoyo. The picture below gives a good explanation of this.
I usually make about 9 or 10 stitches and then I pull the thread through, but do as many as you feel you're comfortable with so that the thread doesn't be tangled or knotted up.
Once you have made it all the way around, make your final stitch so that you needle is right next to your original knot, but pull the needle out on the right side of the fabric, (the opposite side of where your knot is). Then pull the thread until the fabric all comes together like a little pouch.
You can adjust the center and the folds with your fingers to make them look even. Once it looks good and fairly tight, push the needle back through, right next to where the last stitch was made, so the thread comes out on the inside of the yoyo. See below.
Now tie off the thread and cut it close to the knot. You can used your needle to tuck the knot into one of the folds if necessary.
And there you have it, a cute little yoyo!
Enjoy:)
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Stitch Silly