s-kit, I am not sure I understand what your friend had, I am guessing it was a free standing little house of felt. The other day on Simply Quilts a lady showed little houses she make out of fabrics, it may not be exactly what you saw, but anything that gives you an idea how to make something is helpful. she calls them Funky 3-D Houses
Rene

Here is a link that might be useful: little houses in 3 D

s-kit, I am wondering if the house may be a design from Cactus Punch Embroidery, I think they have little houses, because I just had a magazine with a candy shop in it, check out there web site. rene