Here is what you need:
1. Receiving blanket, mine is 24"x 28" but I've seen 30"x30" at the dollar store.
2. 1 Dowel - I spray painted mine white
3. Shrink Wrap - I cut up a Shrink Wrap back from the dollar store. Cellophane would be just fine too
4. Scotch Tape - The invisible kind
5. Flexible Garden Tie - I found mine last year in the Dollar Spot at Target, I bet you could find it in any gardening section
7. Glue Gun/Glue
Step 4. Fold down the top, one third of the way. The open edges are now hidden inside and will give you a cleaner look.
Here is what it looks like all rolled. This is a view of the front. If you look at the back, there will be an extra set of lines from where you folded it in thirds.
Here is the shape the garden tie should be in, if I haven't been clear.
13. Make sure the dowel is as centered and upright as possible.
14. Once your hot glue is set, wrap your lollipop in shrink wrap or cellophane. I wanted to be sure I had enough since shrink wrap does after all shrink. You can get 2-3 lollipops worth of cellophane out of one of those bags from the dollar store.
16. Tie a ribbon around to hide the garden tie and trim any excess shrink wrap. I actually trimmed quite a bit more after I took this picture.
I made three, stuck them in a Dollar Tree basket, with dollar tree styrofoam and some Dollar Tree basket "grass."
One final note: you can probably skip most of the steps and just put a dowel at the back of the blanket roll, shrink wrap it. and call it a day. I did that at first, but everyone I showed it to seemed disappointed it didn't look like a "real" lollipop with the stick in the center.