Knit One, Squirrel Two
This squirrel is knit in the round, with short rows shaping the curved back and head. His bushy tail is easy to make using the same yarn as for the body. Finished size is about 7 inches tall, and 3 inches wide.
Instructions on how to make the tail can be found at: http://rabbitholekints.blogspot.com/2012/05/squirrels-tail-photo-tutorial.html