Step 1: Materials and equipment
This simple project uses equipment that will be found in nearly all kitchens. I used a slow cooker, but a pot with a lid would work fine too, I imagine. You also need a small bowl and a rubber band. And a styrofoam cup ($2 for 50, but repurpose a used one if you can).
Step 2: What and how
Styrofoam is a brand name for expanded polystyrene (a hydrocarbon polymer blown full of gas). Put a styrofoam cup under high pressure and/or heat and it will shrink dramatically as the gas is driven out. You can do this by putting the cup in a submersible ROV and sending it 1400 m underwater, or much more easily, by popping one in a pressure cooker for half an hour - you'll get a neat miniature coffee cup. It's cute, but not much good for anything (espressos?). The photo above shows how when you heat the coffee cup, it first expands, then shrinks smaller and smaller the longer you leave it. It also gets somewhat distorted, because the plastic gets quite soft. I did these in the slow cooker, but you get a more perfect little cup in a pressure-cooker (see the second photo - it's also faster).
Whether you're making tiny cups or making funky vases of your own design, get the cooker up to heat first (on high). It's also important to cook the cup bain marie style, i.e. inside a bowl that is immersed in water. Otherwise, you'll just melt the cup and make a stinky mess of your cookware.