I stumbled upon this very cool product a few weeks ago while in Micheal's and finally got to try it out with Emma and my sweet nieces, Olivia and Abby. Sculpey Eraser Clay, here is a link to their site with some fun ideas for eraser making http://www.sculpey.com/products/clays/sculpey-amazing-eraser-clay It was a great project for all three girls ages 2, 4 and 7. It comes with everything you need to sculpt your creations and afterwards you bake for 20 minutes and are all set to erase. Olivia thought they could erase a little better, but they get the job done.
I think this is definitely something we will do again. If you try it, let me know what you think.