I bought a cute line art (digital stamp) image of an elf online, and colored him in Photoshop. Then used him as a guide for how I was going to crochet this elf (he’s the reason for all the changes and additions I made below).

Used 9mm eyes and placed them 4 stitches apart (3 unworked stitches between them).

Added a nose:
Make a magic ring
Rnd 1: 6 sc in magic ring (6)
Rnd 2: (4 sc in 1st st, 1 sc in next 2 sts) repeat (12)
Fasten off with an invisible join.

For the hair:
I did rounds 1-7 of the head (in brown yarn) then I used this (short curly hair wig) tutorial: http://mygurumi.blogspot.com/2008/10/how-to-amigurumi-hair.html to do the final 3 rounds, but I chained every 2 sts instead of 3, see below.
Rnd 8: (ch 6 sts, and starting in 2nd st from hook sc into the next 5 sts, sc in the next 2 sts) repeat 20 times (40)
Rnd 9: sc around (40)
Rnd 10: turn (ch 4 sts, and starting in the 2nd st from hook sc into the next 3 sts, sc in the next 2 sts) repeat 20 times (40)
Sl st to first chain, fasten off, leaving a long tail for sewing to head.
So there are only 2 rounds with curls, and by turning on round 10, I changed the direction the of the curls, so they weren’t all curling to the right. Plus I shortened the curls on that round, since it is a boy elf.

I made the small size hat, but I made it a little bigger. I increased to 46 stitches, and did a total of 44 rounds in spring green, then I did an invisible fasten off. Next I attached paddy green and continued crocheting:
Rnd 45: sc around, sl st to close the round (46)
Rnd 46: turn, ch 1, sc around, do not sl st anymore, continue in spirals using a stitch marker (46)
Rnd 47: sc 10, dec, sc 22, dec, sc 10 (44)
Rnd 48: sc around (44)
Rnd 49: (slst in next st, sc in next st, 2dc, ch2, 2dc all in next st, sc in next st) repeat 11 times.

Sew ears so the bottom of ear is even with the bottom of round 13 (between rounds 13 & 14) and the top of the ear is even with the top of round 10 (between rounds 9 & 10). Measure over from the nose, and sew the ears over the 8th stitch (the front of the ear will be even with the 7th hole from the eyes).

To make the stripes on the legs, I started with white. I did 4 rounds of each color, except for the first and last stripe, where I did 5 rounds. I used the 4.0 mm (G) hook for the red, but switched to a 3.5 mm (E) hook for the white, since that yarn was thicker. I also joined the rounds here, using Planet Junes tutorial to make it look it’s best: http://www.planetjune.com/blog/amigurumi-help/perfect-stripes-for-amigurumi-video/

Ruffles on shoes (legs):
Use 3.50 mm (E) hook
I attached them to the legs, after I was done crocheting them. I joined the yarn with a sl st to the bottom white stripe then:
Rnd 1: sc around, join the round as I did in legs (14)
Rnd 2: turn, (now working from the inside) (sl st, hdc in next st, hdc, sl st in next st) repeat 7 times.
Invisible fasten off, leaving a long tail for sewing.

Add thumbs to hands halfway through round 6 with a bobble: http://leow-john.com/freeamigurumi/?p=354

Ruffles on sleeves:
Use 3.50 mm (E) hook
Rnd 1: (Ch 3, 1 sc in 3rd ch from hook, sl st in same space as last sl st - picot made. Sl st in next sc) repeat 9 times. Join with sl st to first picot.
Rnd 2: Ch 1, sc around (9)
Invisible fasten off.

For the collar:
Join green yarn with a sl st
Rnd 1: (sc, dc in next st, dc, sc in next st, sl st in next st) repeat 7 times
Rnd 2: ch 1, sc 3 times in each scallop group (21)
Invisible fasten off.

Bell on shoes:
Use 3.50 mm (E) hook
Secure bell to shoe after completing round 2 or 3 of shoe.
Rnd 1: 5 sc in magic ring (5)
Rnd 2: sc, (inc, sc) repeat 2 times (7)
Rnd 3: sc around, insert bell (7)
Rnd 4: sc (dec, sc) repeat 2 times (5)
Close hole, pull yarn end through other side, wrap around stitch, and bring back through closing hole (beginning strand is also coming out of this hole) thread both into shoe, and secure to shoe by tying both of them to the starting yarn inside of shoe.

For the belt I chained 36 (or the length around the belly) with a 4.0 mm (G) hook, then I did 35 sc in the back bump of the chain using a 3.5 mm (E) hook. I attached the ends, then sewed the belt to the belly, and used black yarn to embroider the belt buckle on.