All you need is:
plastic wrap or plastic grocery bag
plastic or glass bowl
a towel, or felt squares
Step 1: Soak Paper
I divided the wrappers by color. If you don't want to separate by colors, that's fine, it comes out a little grayish, but looks awesome with some glitter thrown in.
Rip the paper into bits, squares around 1 inch work good, but they can be a little bigger or smaller. Soak the paper overnight. I used empty jars, so I could put one color in each.