Very easy. See here: http://www.marthastewartweddings.com/article/pom-poms-and-luminarias
I made 18 of these for my daughter's birthday in Feb. You can also buy them in Party City and Etsy.

Thanks so much Fimran and Y.
I will try that soon after getting the materials. I really want to make them for daughters room. But any more suggestions and tips are welcome.

Firstly, use good quality tissue paper. The cheaper ones don't turn out well. Secondly, use at least 10 sheets of paper. And thirdly, they are quite time consuming. It may make more sense to buy them if you want more than 5/6 (or 18 like me!).

Hello all, for any of your PomPom needs , I have the best quality , all hand made , by me :) please visit my store on #ETSY tamscorner.etsy.com and I would be happy to serve you!

Thanks

Tamy