It has eyes!!!!!! soo cute! It is alive... perhaps you should not knit or crochet it but build a little hut with a bed and so for it. (I am not sure how yarnballs are fed and cared for...) I just now notice that I cannot resist anything that has fur and eyes (and sometimes fur is enough as I love tribbles which does not have visible eyes)
And with the Tunisian crochet. I still have an unfinished shawl lying around, as I find Tunisian crochet tough for my hands. But I love the woven appearance of the standard Tunisian stitch. The knit stitch is new for me and it looks good with the multicolour yarn (it will be a beautiful present). Here you seldom get long Tunisian hooks, but more often the hooks have cables. Not sure which of both is more comfortable to work with.