Roly-poly caterpillar (wiggle right pointer finger)

Into a corner crept, (place right pointer finger in left cupped hand)

Spun around himself a blanket (spin around)

Then for a long time slept. (place head on folded hands)

Roly-poly caterpillar (wiggle right pointer finger)

Wakening by and by, ("stretch" right pointer finger)

Found himself with beautiful wings

Changed to a butterfly. (flutter arms like wings)