I love needlefelting for lots of reasons...it's easy, fun, stress-relieving...but mostly I love it because it's like painting with wool.
I used a stencil to mark the butterfly outline on the felt, then I just started placing strands of wool inside to create a multi-color effect on the wings. I accented the butterfly with embroidery, then assembled the pillow with a second piece of felt and closed in some stuffing with a blanket stitch.