Make three little c's. Hmm, this seems familiar. This is a basic starting point for lots of these little letters.
Now you're going to add some background fabric - I use a fairly narrow strip here. The background goes on top of little a and below little g.
[Note that on the first a I had a slant going, but I straightened up the top of the background, rather than having that slant as well.] Next step is to add letter fabric along that length of background. This will determine the maximum height of your letter.