Make a puppet or a soft toy.
Instructions are given for both. I used mine as a little present by adding a chocolate penguin inside.

Gauge is not important, just be sure to use a needle that ensures no stuffing shows through. If you make the puppet version, then stuffing is not needed.

Any stash colours will be fine, who says penguins have to be black and white,

I used DK to get a 8cm penguin, worsted would create a slightly larger one.

Small amounts of yarn needed. (literally 8 sts x 3 rows worth of yellow for the beak
and 12 sts x 12 rows worth for the feet, )
A belly colour .
Actual penguin colour.