Cut the paper plate in half.
Paint one half of the paper plate blue. Use a second coat if needed. Set aside and allow to dry completely. You could also use a blue plate so you didn't need to paint it.
Using the hole punch, punch 8 holes into the flat bottom part of the paper plate. Try to space the holes out as evenly as possible.
Cut the yarn into 12 inch pieces. Complete this step 8 times.
String each piece of yarn into each hole in the paper plate and tie into a knot. (I place the yarn going through the painted side and tie in a knot on the unpainted side.
Stick (or glue) the eyes onto the paper plate. Draw a mouth.
Your paper plate craft is ready for play or display!