I have been sewing letters. They are scrap quilting fabric on the top and backing with scrap batting in the middle. I cut out about 5-6 inch squares of all three layers. I trace the letters with a silver pencil, sew on my marked line and then use pinking shears to cut the edges. I put a dot of fray check on the start of the seam . I think that you could put magnets in them but I am not. I am sending  these to my grand daughters. I am going to add to the upper case set over time and do lower case letters and numbers.

http://www.homemade-gifts-made-easy.com/free-applique-patterns.html

Here is the free templates for the alphabet. It is for applique letters so some are reversed, easy enough to fix!

I was inspired by a pinterest post that my sister sent to me. I love the internet! Here is my start!

Vicki