I have to say this was one messy project! I heard people have been making these for years. I just recently found the idea. You need the following supplies:
First you mix about 4oz glue, 1/2 cup cornstarch and 1/4 cup water. This can vary a little. You just want the mixture to be thick, yet still liquid. Then you want to blow up a balloon. I am going to seek out round balloons. The regular ones blow up as an oval, or Easter egg shaped. Next you unravel some of your yarn. You can either leave it on the roll, or you can cut long pieces off.
If you are going to turn it into a light then you will want to mark a circle around the top the size you will need to drop your light kit through so as to not place yarn in this area. Now you will want to rub vasoline on the balloon so the yarn will not stick to it. Next run your yarn through the glue mixture. I would run it through and then slide my fingers down it to drop excess glue back into the bowl. Place the end of the yarn somewhere at the top. You can either wrap the yarn horizontal, or vertical. I did vertical and the yarn seemed to stay on good. After I had several rows of yarn on the balloon I started doing some rows around the balloon instead of up and down.
I feel like the key is to make sure your yarn is wet with the mixture, but not too wet to where it is dripping everywhere. Like I said, this is MESSY. After you have filled up the balloon and created the pattern you want, you will want to tie a string to the top and hang it from something. I hung mine in the shower.
You will want to leave it to dry for about a day. I would recommend then popping the balloon outside. We did it in the house and glue flakes went flying everywhere. I had a big mess, but it was actually pretty funny! Now pick off the excess glue flakes attached to the yarn. You can now either spray paint the balloon, or leave it the color you have. Last, place your light kit inside.
I didn't paint the one in the picture. I want to do another one that is round and I want to place more layers of yarn on it. I also made the opening at the top too large for a light kit. I will update when I do the next one. Good luck with this one, and please post pictures of your finished lantern!