The first thing I tried was "Furring" and this is how I did it. I went to the Goodwill and found a big teddy bear with reddish brown curly fur. I started cutting it off with my good sewing scissors and storing the small chunks of curly fur in a plastic bag. Then I made some little Pro sculpt clay teddy bears and used glue to add the curly chunks of reddish brown fur. They were pretty easy to do and looked very sweet. I think I will look for teddy bears of other colors and start clipping off the fur and storing it in plastic bags.
For the "Flocking" I purchased many colors of the flocking on eBay. The directions said to use those yellow and red plastic squeeze Mustard & Ketchup bottles to spray the flocking. That works pretty good. You make your clay animal, cover it with glue, and put it in a tall box or ice cream bucket. Then you spray it with the color you want to use. I haven't tried two colors...not quite sure how you would do that. I made two medium size jointed mice and a large jointed white mouse (all made of clay) and some very small dogs. Two were Chihuahuas and one was a mutt. Their bodies were cloth and the paws, heads, and tail were made of clay. They were fun to do also.