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Maggie and Mildred is a short film by Holly Klein about the make-believe adventures of two little girls. She cross stitched all of the characters and scenes, and then animated them. In an interview about the project, Klein wrote:

It took me about nine months to stitch all of the elements. I stitched the house first, then made the characters with all of their parts and outfits seperately. I then scanned everything into the computer, cut them out, and animated them in the computer. The whole process took me just under two years.

via Make | Artist's Website | Interview with Klein about the Film