Most of my project are knitted with Double Knit (8 ply) yarn.
You can make a good use of your stash if you have some already. I usually use 100% wool yarn since some synthetic yarn can be a little bulky and difficult to knit with fine needles.
Wool gives fantastic feels, colours and tones.
I quite often use tapestry wool. They are fairly tightly plied and gives a clean finished look.
And you get to choose from so many colours! It is convenient when you need a small quantity.
Boucle yarn or fine yarn with loops, usually made with mohair or alpaca wool.
These are great to make hair and beard. You can achieve curly effect without much effort at all.
They can be found from weaving material suppliers.
Hair can be directly sewn to the head without knitting.
Snow Flake Chunky yarn
Sirdar has this interesting yarn called Snow Flake. You can make fluffy things with them. It is very handy when you want to make fluffy beard or angel’s wings.
You would want to use slightly larger needles for this yarn to enjoy this fluff.
Usually I knit the main parts with 2.50mm to 2.75mm ( US 1-2) knitting needles (see equipment), but for this yarn, I use 3.00mm.
I use stuffing wool for my project.
I quite often rescue wool with humble quality, which is not suitable for spinning or felting. The fibre can be a little too short or too coarse, but it is perfectly fine for stuffing. The wool has plenty of bounce and it works just fine. And the naturally dark fleece is very good when you want to stuff items knitted with dark yarn.
If you are not fortunately enough to lay your hands on wool fleece, you can use polyester toy filling and cotton wool. Toy filling can be difficult to fill a small space. In that case, use cotton wool for small parts and fill the main body with toy filling.
For my knitting, I use 2.50mm to 2.75mm (US1-2) knitting needles.
All my creations are knitted flat and sewn together at the end.
These are much finer than needles you use for DK (8 ply) yarn, but pieces should be knitted fairly tightly so that the stuffing will not be visible.
You are free to experiment with slightly larger needles if you wish.
Stretch your hands from time to time. Open and close your hands to prevent them from becoming too stiff.
I use chenille or tapestry needle with fairly sharp point. It is difficult to sew up with needle with blunt end since pieces are tightly knitted.
Not essential, but can be handy when you want to pull out the sewing needle through thick layers.
A chop stick
It is a useful and safe tool to stuff toys.