Ok, I started with a plain memo book, looks kind of like a composition book, but small. I drew up a template for the cover in Illustrator, and printed it on the back of my decorative paper, then cut it out. I used my (new! just bought it!) Xyron 500 to stickerize the paper, stuck it on the book, then added an initial sticker for the person I'm giving it to. I didn't make the initials, they're just regular stickers.
This particular one is actually a design I printed myself on some purple paper, because it's for a guy whose favorite color is purple and I couldn't find purple paper that wasn't all girly.