I made some ugly toy horses for my kids last Christmas. I didn't mean for them to be ugly; it's just that they turned out that way. That doesn't hinder their play-ability, though! I made these for my kids because they were always stealing my yard-stick and pretending it was a horse. It was no problem for me to find some lonely socks and scraps to put to good use.
Some tips if you want to make a sock-horse:
Start with a 3- or 4-foot stick of some kind. I bought 5/8" dowels from a craft store. Use scraps to make ears, and anything you want for stuffing.
Loop some yarn back and forth for the mane and sew it on, then cut. Kind of tricky to get the sock onto the arm of your machine and sew sideways.
After stuffing the horse-heads, I used crochet cotton and a large darning needle to sew on the eyes, stitch along the mouth to pucker it up, and stitch through the neck to make it bend.
I drilled a small hole through the dowel near the top, and then when I stitched around the neck, I stitched through this hole a few times to keep the head on the stick, and the stuffing inside.
So even though they are ugly as old socks, my kids have played with their horses a lot! It was a fun and easy project. No professional skills required.