She makes plushies, clothing, purse and wallet sets, all sorts of stuff, from patterns she makes herself. Right now she's making masks like a fiend. I made about 30... she's made over 300!
The Rainbow plush is called a "Cubd". Apparently there's also a Twilight Sparkle but that's it for ponies. She's marvelous squishy and soft.
I have some resin stuff so I shouldn't be wasting too much cash, but I'm awful about suddenly 'needing' to start a new hobby then tossing tons of money at it. With the resin you can at least make your own molds, so you can generate lots of cute stuff without having buy expensive molds.
What wonderful news! Huzzah!