Pictured is Webster Craft's Yellow Tool. Yarn is threaded through the tool with a wire threader and you simply punch the needle through the fabric from the reverse side following an iron-on transfer numbered pattern.
The punch needle creates a series of loop (like making a tiny rug) You can us the design on a garment, cushion cover or just to frame. I made the sunflower designs to decorate the center of a summer tablecloth. Different size tools are available.