Cut out pattern as instructed on pattern pieces. You should have two lining fabric pieces, two lining pieces in cotton batting or interfacing, two heel pattern pieces, two upper stocking pieces and two lower stocking pieces.
Place one interfacing/cotton batting lining piece to the wrong side of the fabric lining piece. Baste-stitch around outer edges to secure. Repeat for the other lining and interfacing. Place lining pieces with newly interfaced backs right sides together. Pin around edges. Sew around outer edges, leaving a 5" to 6” opening along the bottom of the foot. Do not sew the top of the stocking closed, just around the sides.
Line up the curved end of the heel piece along the heel of the exterior lower stocking piece. This is just to ensure that we work with the correct side in the next step. Take the upper curve (not lined up with the bottom of the stocking), and sew a line of gathering stitches along the outer edge. Gently pull on the bobbin thread to gather fabric. This will give you a nice curved edge for pressing. Turn gathered edge toward wrong side and press. Line the heel piece back up with the lower stocking piece, and sew around the pressed edge to secure into place. Repeat for other heel and lower stocking piece.
Place the upper stocking piece right sides together with the lower stocking and pom-pom edge. Pin in place and sew. You may want to use a zipper foot on your sewing machine to get closer to the pom-pom edge. Press seam up, and edge-stitch. Repeat for other exterior stocking pieces.
In order to ensure smooth finished curves you may want to clip your seam allowance, especially in the curvy foot area. Simply snip a slight notch into your seam allowance, getting as close to the sewn line as possible without cutting it.
Slip lining stocking around the outside of your exterior stocking so that they are right sides together. Match up the side seams along the top edge. Pin together, and sew around the top edge. Turn stocking right-side out through the bottom opening in your lining stocking on the foot. Sew opening closed, and push lining inside of the ruffle stocking. Once again, use a blunt pointed object to turn out the edges.
Bring the braid ends together to create a loop. Secure with a pin to the inside back seam of your stocking. Sew a small straight line directly over your braided ends, securing them to the stocking. Go back and forth over this sewn line a few times to really hold it in place.
Feel free to get fancy with your elf stocking, personalizing it with embroidery, applique or fabric markers.