To make the bunny, first, fold a white washcloth in half along the diagonal to make a triangle. Roll up the towel, starting at the corner across from the base of the triangle. Fold the towel in half so the ends (the bunny ears) are pointing upwards. Fold the towel in half again, so the bunny ears point downward. Cross the ends over a bit so you won't have a seam showing. Secure the bundle with an elastic in the center. Set the towel on the side and puff up and arrange the ears. Tie a piece of ribbon around the elastic. Use the glue dots to adhere plastic eyes, a pink pom pom for the nose, and a pom pom for the tail.
To make the chick, fold and roll a yellow towel as you did for the bunny. Bend the towel into a spiral (as if you were making hot pretzels). Secure with an elastic, puffing up and arranging the ends of the towel for the wings. Tie a piece of ribbon around the elastic. Use glue dots to adhere plastic eyes and a triangle of orange felt for the beak.
A note about safety: As I mentioned above, if you plan on using the washcloths, use glue dots to easily remove the eyes, tails, noses, and beaks (and be sure to remove the glue dots, too). If the gift is for a child (especially under three), be sure to remove the extras and the glue dots. If you are using more permanent hot glue in place of the glue dots, I still do not recommend giving a child under three the towels with the eyes, noses, and tails attached.