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Round over the edges of the stakes using the router table with a 1/2" roundover bit.
Sand the edges smooth and brush a coat of acrylic paint over all surfaces of the stake. While the paint is still wet, wrap a piece of white tissue paper once around the base, positioning it about 1" from the bottom edge. Or, wait until the paint dries and adhere the tissue paper with a thinned-down mixture of water and white glue. The paint color will show through the tissue paper, making it look like a crayon wrapper.
Attach two strips of rickrack or ribbon to the top and bottom of the tissue paper with hot glue.
Brush wax medium on the exposed areas of the crayon. Use a heat gun to slightly melt the wax medium.
Create the color label on the crayon with rubber stamps or other lettering techniques. Seal the crayon with a coat of water-based polyurethane spray in either gloss or matte finish.
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