This is a Magic Yarn Ball.
Magic yarn balls have goodies wrapped up inside them. The goodies can be anything that can be covered over by the winding yarn, from the core of the ball to the last little bit on the outside, held in place here by Ms. Stitchmarker.
This Magic Yarn Ball is this week's Countdown to Contests prize. The yarn is recycled silk, from Darn Good Yarn.
To be eligible to win the Magic Yarn Ball, just answer the following question --- in the Comments section --- by Friday.
What is your favorite title --- song, book, or movie --- that contains the word "magic"?
(I think I have to go with "Black Magic Woman" by Santana.)