Picasso used to make magnificent dolls for his daughters out of anything he could find. When I was a little girl my Nan used to make me dolls like this, using old-fashioned dolly pegs. This is my attempt to recreate her technique.

It won't cost much - so she is a recession angel. The dolly pegs I bought from a shop near my studio in Spitalfields, East London, for a few pounds [they are also available at tinyurl.com/5urv7j for £1.95].

As well as the peg you will need a piece of felt, some scraps of pretty lace - or maybe old net curtain instead - some embroidery cotton, a pipe-cleaner and a bit of wire. Fabric glue and some double-sided tape will come in useful, too - and maybe some spray starch, if you have it.

Remember, you don't have to be neat and tidy with everything, and you can dress your angel as you wish. It's an easy project for children to help with, too. This is your angel, individual and special. But you don't have to stop here: you could make a Father Christmas or a whole Nativity scene. The world's your oyster in dolly-peg land.'

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1 First you need to sew an underskirt to keep your angel warm, and so you have something to attach her arms to. Cut a rectangle of felt that will snuggle around the body of the peg. Stitch up the side of the felt and also around the neck.

2 Carefully cut two slits through which to thread the angel's arms. Then thread the arms through the slits. I've used some cord for this angel, which worked fine, but in an ideal world we would have used some pipe-cleaner

3 Now the hair. I've used some embroidery cotton, which costs about 70p. Cut this to length, then stick a bit of double-sided tape to the middle of the wig's underside - or use embroidery glue and a small square of material to make the wig base. Stick this to the top of the peg, with the hair falling to right and left. Use a small piece of cotton to tie it back. Finally, make her a crown. I've used gold material but copper wire would work, too.

4 Then the wings. Take a piece of lace or net curtain - or even your mother's wedding dress. Cut a rectangle that is twice the length of the wings that you want to make. Fold it in half and cut from the fold, around and back again to get the wings shape. Your fold will be the spine of the wings, where they attach to the angel's back.

Gather in the fold slightly: this will give the wings a realistic “wing-like” ruffled look. You should stitch your wings to the felt underskirt.

If the material you use is a bit droopy, use starch spray to give them some rigidity: otherwise run some wire through the top of the wings.

5 Finally, her gown. We used some more lace for this, drawing it around her body and stitching it up at the top.

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