A very simple project using almost any wood, preferably recycled, hardwood does cut and smooth better.
I once made one 15" tall and 2" thick, I've also made some just 1" tall, very popular on our craft stall.

Step 1: Warning!

Power tools... dangerous, hurt you!
Sharp tools... cut you!
Dust... chokes you!

Step 2:

Fret saw or scroll saw.
Files.
Sand paper.
Varnish.
Glue.
Wobbly or "googly" eyes.

Step 3: Find a Piece of Natural Wood.

Around 3" square and 3/4" to 1 1/4" thick is a comfortable size at first.
This was once an old bread bin, I think its Rubberwood?

Step 4: Tune in to Nature.

Study it for as long as you need to imagine a shape, and when you're happy with it draw it onto the wood, and then cut around the shape with a scroll saw or fret saw/coping saw, keep in mind as you are cutting the inside curves that you need to leave room to fit files and sand paper into to smooth the edges, also don't leave any areas too thin as if they cross the grain they
could be weak and snap off.
Larger pieces could be cut using a jig saw or band saw, smaller ones really need a scroll saw or fret saw here I'm using a scroll saw.
Don't forget to leave a flat area to enable it to stand up.

Step 5: File the Sides and Edges.

Smooth the edges to remove any saw marks using medium then fine files if possible, or even just sandpaper.

Step 6: Next...

Then sand it all over. (don't forget the dust mask)

Step 7: The Final Touches...

Give it 2 or 3 coats of varnish and allow to dry.
Note - If using wax or some none drying oils then the eyes will not stick to it.
If its for the garden then 4 coats of exterior varnish.
If using Oak, Chestnut or other durable wood it doesn't have to be varnished and will turn silver and age beautifully.

Give sight!
Glue on some wobbly eyes.
...say hello to your own tree spirit.