I have a very close friend whom I asked to make some customized Christmas stockings. We gave her our ideas, suggestions, etc. and she gave her examples of exactly what we wanted. The workmanship was more than terrible and we were all so disappointed with the whole project. Worse yet, I will be paying her for these. I really thought she could do this and wanted her to because it was such a special project for us, but I guess I just didn't realize how untalented she is at drawing and sewing. She does crafty things all the time but I guess I just didn't pay enough attention to detail as I am not the crafty type. How in the world do I treat this?

These are your options,

1-Pay her, she did the work though it wasn't near what you wanted, and tell her thanks and never use her again.

2-Pay her, and tell her what a lousy job she did.

3-Tell her she did a lousy job, and refuse to take what she has done.

4-Tell her she did a lousy job, and negotiate a better price

So I assume you already got them and used them ? Since it is after christmas now. So if you accepted them you pay her for them and learn a lesson to be more exact on what you want.

You could have at the time she gave them, said they were not acceptable

BUT, this is the issue, you said close friend, so I would pay them but note not to ask them for more craft work.