Look at this!!! I found this tutorial via the design blog Apartment Therapy who found it on Sew Mama Sew: http://sewmamasew.com/blog2/?p=4778
I wish I had time to do this -- Isn't it awesome! You could make it into a heart shape for Valentine's or use those iron-on photo transfers to make it into a button-on puzzle or use a crazy-quilt of colorful fabric scraps....ooh, the ideas are gushing out!!!