AI would use an extruded to produce lots of little bunches of "yarn" with one of the multi hole inserts. You could probably do it by pushing the paste through a sieve too. Then just pop the bunches together in a ball shape. You'll probably lose some of the texture as you stick it together, but you could use a tool to tease the strands apart again.
Of course, I don't know how big you want this. The technique would depend on the size of the finished object!
I did Santa's fur (and hat ball) by taking the rolled fondant and then taking a pair of tiny cuticle scissors and just nipping randomly, it turned out great.
I'd use a garlic press to produce the yarn and stick them onto a red ball of paste. You can use a pair of scissors to cut them down to size.