A while back I covered wooden letters with old music paper, more recently I decided I wanted to make some more paper covered letters but I didn't want to buy more wooden letters..... And as I was thinking about his I walked by our garbage can and saw a pizza box sticking out and though "what can I make out of that cardboard?" so I put those thoughts together and decited to make my own letters.
1. draw out your letters on the cardboard
2. Cut out the letters with an x-acto knife
3. Glue the cardboard onto the paper you want and then cut out about a half inch border so that you can fold it around to the back side.
4. Pull the edges around tight and glue them to the back side of the letters.
It's pretty easy to do and so so so cheep! You could decorate the letters more than I did by using glitter, ribbon, buttons, fabric, or pretty much anything you want.
Here is another example one I did.