Make a book layout. Toddlers are far less interested in words than they are in pictures. Draw big pictures and write words big enough for you to read. If you want to go all out, scan your pictures into your computer, add words in 14 point font and print.
Laminate the pages. Put pages back to back and stay away from the edge as best as possible.
Fold the felt board sheet in half and hole punch it 1/2 inch from its folded edge at the top, in the middle and on the bottom.
Hole punch the laminate sheets to match up with the holes in the felt board.
Insert the pages.
Weave the yarn through the 3 holes. Make sure it isn't too tight to open. Tie the yarn and cut off the excess.
Repeat as many times as you want.