I jumped ahead of finishing the lantern and made the faux candle that will go inside it. I basically used the same flameless candle method I posted a "how-to" for last year. I know there are more realistic ways to create a prop like this, but I think the silly look of the fake flame in this case fits the overall cartoony feel that the finished Patrick O'Treaty piece will have.
Before: Cheap-o battery tea light and a toilet paper tube trimmed for an uneven, melted edge look.
After: Lots of hot glue and craft acrylic.
I decided to paint the candle as opposed to keeping the more wax-like translucence of the hot glue because it had more contrast as a solid color inside the lantern, you'll see what I mean in Part Three.