In a large mixing bowl (guys, ask before you take because this is going to stain whatever you use), mix the paint with 5 parts water. Put the lid on the bottle and put it a side for a later use. Waste not want not, right? You will need it later, promise!
Once you have that done, add in 3 cups of fine sawdust.
Start mixing. Keep going until you have no big clumps. If you still have clumps and everything is mixed together, add a LITTLE more sawdust. Once it's all mixed, line a board with wax paper. Place the sawdust on the wax paper and put it in a place that no one will mess with it (animals, ie cats can be a bane on this one). Now you let it dry. This can take up to 2 or 3 days depending on thin of a layer you put on the wax paper. Mine is pretty thick as I'm running out of room for all the projects I have going on at the moment. I'll check it every day for the next 3 days, stirring it up when I walk past it.
I'll let this dry and we'll finish it up. Not to much longer and I'll have enough flock to cover every tree I'm going to make and then some!