When I was little (and, yes, it's hard to believe that I was ever "little"), I was completely obsessed with these little guys:
As we would decorate our Christmas tree, my job was to make sure that each and every one had the perfect branch to perch on and that each one was accompanied by its own, matching felt mushroom.
I was convinced that they would un-hug their knees at night and scamper around the tree, returning to their spots by dawn. And, yes, I would check them every morning to see if they had moved.
Vintage "knee-hugging elves" from Ruby Lane.