First I cut off the elastic end of the sock leaving just the smaller knit part. Now it's just a tube with one open end about 6 inches long. The toe part will be the "tushy". I turn that inside out and stitch about an inch long seam toward the inside so that it creates a little tushy too. 
 
Then I began to weave a slim cable tie in a circle pattern in and out of the knit in about a 1/2 diameter circle until it meets. Then I connect the ends of the cable tie. And cut a hole in the center, right through the knit. Do this on opposite sides of the top for arms and on the bottom about where legs should go. Do the last one around the opening at the top where the head will go.
 
 I then dab some Fray-Check liquid on all the holes and let it dry overnight.
 
When the sock is all dry, insert some pellets and polyfill to stuff the body, and then insert the arms and legs and head. Pull the cable ties together just enough so the arms and legs and head can still turn a little but not fall out. Snip off the end of each cable tie and you have a soft body :-)

Hopefully that all made sense :-)

Here is a link to one that is very awesome done by a friend on Claybabies Yahoo group, Barbara Guilford:
http://home.comcast.net/~sky980/Tutorials.html

She did a wonderful job with this tutorial, it should be a big help to all.

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