I have discovered the wonderfully talented Rebecca Danger on Etsy. She designs all kinds of adorable knit toys from animals to cute little monsters. She has a terrific blog with some free pattern downloads as well. Her patterns are very easy to follow and have tons of pictures for reference.
This is Wasabi the pug...so cute, right?
Or how about Penelope the monster.
And, I have these little Monster Chunks listed for sale on my website.