I simply used regular yarn (scraps) for these ornaments, and a yarn needle.
Sew the entire mustache with white. Set aside.
Sew both back and front as stated.
Sew the mustache to the front piece by holding it on top of the front (completed) piece, and by bringing red yarn in from the back hole as shown by the arrows in the photo, then back down a few spaces in the same row, and knot on the back.
Start sewing the edging of the front piece at the very top row, then place front piece on the lower portion of the completed back piece. Hold together and sew front to back piece using white yarn.
Back: Cut as shown, and use white in upper corner, and red from the top to one row in the widest part (larger arrow is showing this row).
Front: Use pink to make Santa's face, leaving 4 rows empty above, two empty from the smallest width area, and leaving 6 rows empty below. All edges will be finished when it's sewn together.
Mustache: Use white yarn for entire piece, and edges.
Stitches are worked like embroidery, but not in "X's". Simply go in from the back and down in the upper right space, as shown.
For the face, you will make long stitches, with the white yarn, going in from the back, and down in the last space below, as shown in the photos. Eyes are simply made by an "X" stitch in black.
Using red yarn, go in from the back (center, top), leaving a tail of yarn, then back down a few squares over (evenly), leaving another tail of yarn. Cut and tie ends into a knot for a hanger.
If you have trouble with these instructions, please leave a comment.