This is a project Kenzie and I did a while back, but it was really popular, so we'll give it a redo with a little update. Here's the directions from the Craft Diva:
A yarn bowl is really just yarn mache because it is the same technique and same paste as paper mache. First, you need the paste. Here's the recipe:
Combine 1/2 c. flour with 2 cups water
Boil 2 c. of water and add flour/water mixture to pan
Bring total mixture to boil (watch so it doesn't boil over)
Let mixture cool and then add 3 tablespoons sugar
Paste will thicken as it cools completely
You can use balloons to make paper mache or yarn mache, but for this project we used a bowl. Cover the bottom of the bowl in clear plastic wrap, so you protect your bowl. (You'll see the bowl below.) Pick your yarn. I like a regular worsted weight, although a cotton would probably work very well. I used a "homestyle" yarn, which wasn't the best choice because it started to unravel.
Cut the yarn in the lengths you want and dip each piece in to coat completely. I wouldn't recommend dunking the yarn too much as it makes it harder to remove the paste. As you take out each piece, strip the wet paste off and wrap the yarn around the bowl in any pattern you choose.
Use as much (or as little) yarn as you would like. We tended to use a little more to make the bowl more solid.
Once you have finished, allow the bowl to dry COMPLETELY, at least overnight. If you live in a high humidity area, it may take longer. Slowly remove the plastic wrap from the bowl first and then carefully peel the plastic wrap off the inside of your yarn bowl. If the yarn doesn't hold its shape as you pop the plastic wrap off the bowl, stop and let it dry longer. (You may also have to use more paste to get it back into shape.
We also tried a slightly bigger one in multiple colors:
And there you have it - Kenzie does Yarn Mache Bowl.