Begin by expanded the paper lantern and cutting the cup in half. Cut out the bottom of the cup inside the bottom rim.
Line up the cup with the hole at the base of the lantern. Trim the cup if necessary. Hot glue to the base of the lantern.
Cut a strip of fabric between 1 to 2 1/2″ wide, and hot glue it to the inside of the cup opening on the bottom.
Paint Mod Podge onto the fabric where the strip will lay. Stretch the strip across the Mod Podge and smooth. Hot glue to the inside of the top opening.
Paint the top of the fabric with more layers of Mod Podge so that it sticks to the lantern, in a paper-mache style.
Repeat until at least the cup base is covered.
Fill in the rest of the balloon, using long strips as well as paper scraps. Add Mod Podge, continue coating, and let dry.
Cut two lengths of yarn and make two loops to sit on the balloon as shown (one larger than the other). They should not be large enough for the loop to slide off the balloon.
Remove the loops and place the smaller inside the larger on the table. Attach the loops to each other where the arrows are in the image using short pieces of yarn. Snip off the ends.
Place the loops back on the balloon as shown.
Cut four long, even lengths of yarn and tie one to each corner of a berry basket.
Tie the other end of each of those four lengths to the center of the bottom loop on the balloon. Knot and trim all ends.
Optional: make a final, smaller loop to keep the basket more secure. Slide it up onto the cup, and use four small lengths of yarn to secure this loop to the basket strands.
If desired, weave ribbon through the berry basket. Hang to display.