So we used these delicious things.
These are the materials and dimensions that we used for each pencil:
Roll of Rolo or Cadbury chocolate
Hershey's Kiss (we got ours from Red Dot Stores in Australia)
Corrugated cardboard, 13cm (5") x 8cm (3 1/8")
Pink cardboard, 2cm (1") x 8cm (3 1/8")
Pink cardboard circles - 2.5cm (1") in diameter
Silver cardboard, 1cm (0.5") x 10cm (4")
You could also use aluminium foil instead of the silver cardboard.
We used double sided sticky tape to attach everything, but I would actually recommend using hot glue for its strength (everything kept popping off, so we had to put lots and lots of sticky tape on it).
Attach the Hershey's Kiss to the end of the Rolo/Cadbury roll
Sticky tape (regular tape is fine!) the pink rectangle of cardboard to the width end of the corrugated cardboard on the inside (wrong side). This makes the eraser part of the pencil.
Roll the corrugated cardboard (with its 'eraser' extension) around the Rolo/Cadbury roll. Hot glue in place.
Attach the strips of silver cardboard over the join where the corrugated cardboard and 'eraser' meet. Hot glue in place.
Hot glue the circular cardboard on the end.
I think these make the perfect teacher gift!