The process is time consuming and labor intensive, but not particularly challenging. I used a tutorial found at Aesthetic Nest, only I don't have a chenille cutter. So I just used scissors, but taped over the tip of the bottom blade so I didn't accidentally poke through the printed layer.
The project essentially involves sandwiching layers of fabric together, then quilting them together with miles of straight stitches on the bias.
Then you flip that bad boy over and cut through all but one of the layers to create the "chenille." Add some blanket binding, wash it up, and you're done.
Boo loved it and of course it matched her bedding perfectly...but this one's shipping out today. Sigh.