Step 1

Using a hand pump or ball pump, inflate the balloon so that there is about 6 inches remaining at the end in uninflated balloon. This is important so as you twist the balloon, the air has a place to move into. If the tail is too short, you can easily pop the balloon. If you balloon looks like this, it is inflated the proper length:

Step 2

Making the first twist: starting at the end you tied off, grab about 3 fingers length of balloon, and twist it off. Don't be worried about harming the balloon, it won't pop when you twist it like that. Hold both sides of the balloon around the twist so it doesn't come undone. Though the balloon twists very easily, it also untwists easily if you don't hold the bubble and balloon. Your balloon should look like this:

Step 3

Your first twist is the nose, now we need two more twists for the ears. While holding onto the first twist, make two more twists while holding onto them all. This will come easier after practice, so try holding all three in your hand at one time. Your balloon should look like this:

Step 4

Take the joint labelled B on the diagram, and bend it toward joint A. Like this:

Now, take the two joints and twist them together. This will give you a nose and two ears, like this: