Don't Eat the Yellow Snow

Normally I don't have too much trouble identifying figurines, but when I passed this one on the shelf, I had to stare at it for a while (which, as you can imagine, was a trying experience).  It inspires a plethora of questions:  Is it meant to be the ghost of a demented clown, or a small snowman that the neighbor's dog hiked his leg on? Are those things on its cheeks faded rosy spots, or tears of anguish?  Why is it so severely pigeon-toed? And I'm not sure what the protrusion on the right side of its head is -- a hollowed-out turkey leg worn as a hat, perhaps?

Be careful.  It wants to give you a hug.

But the biggest question of all:  How did somebody live with this thing staring at them in the first place?