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Squirt some dish soap into your container and fill with warm water, fill the other container with cold water.
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Grab a tuft wool, bunch it together into a ballish shape and dip into the warm soapy water, remove and squeeze out the excess water.
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Place the soggy tuft of wool in the centre of the palm of one hand, place your second hand over top and roll in a circular motion.
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Once the tuft of hair is felted into a ball, dip it in the cold water to rinse (the longer you roll, the smaller and denser it gets).
I tried to make the balls even in size but I found that the different types of wool/pet hair felted differently. Most of the felt balls ranged from 1.5-2cm in diameter. I kept them in a paper bag until I had enough. Periodically I dumped them on the floor and spread them out to see if I had enough for a rug.