First wait until your cat nip plant is approx. 6" tall, it actually won't take very long until it reaches this point as it is a fairly fast growing plant. Take scissors and clip it off right at the base.
I take about 6-8 stalks at a time and wrap my knitting yarn around the stalks from one end of the bundle to the other to secure the stalks together. After securing the bundles take them to a dark and cool area (like a closet) and hang them so the bundles are hanging upside down. Try to keep the closet door closed while the drying process occurs it is important that as little light as possible gets into the closet.
It takes roughly 6 weeks for the cat nip to completely dry out. After the drying process is complete take small bunches of the cat nip and insert into some fun hand knit little cat toy fish or mice and watch your kitty go crazy!!!
This is "Boots" and his hand felted organic cat nip fish!
Here he is again...judging by his expression the cat nip is setting in!
Thanks to Heather for letting me post photos of "Boots" and his Hipknitized organic cat nip fishy :)