This morning, he saw it & wondered how that happened. I told him that after last Easter, the Easter Bunny gave me a little magic Easter dust & that I sprinkled it on the balloon then went to bed. He loved it. I loved seeing him so excited & happy.
I used thread, but bedspread cotton works better. Generic glue isn't quite as easy to work with as Elmer's School Glue. Water it down a little so the yarn will absorb it. Also, after you blow up the balloon, but before you start gluing it, put a piece of tape on it. Use about 2", then when you are ready, you can run a pin through the tape & it won't pop. You can also get the thread loose before it totally goes down, making it easier to get the threads loose.
If you want more of a basket, instead of an Easter egg type shape, invert a bowl & cover with plastic wrap. Then you can just pull the plastic loose when it's totally dry.
What I did is based on instructions, here: http://www.ehow.com/list_6