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You will need an old webcam, an electronics tool kit, a hot glue gun, and some type of inconspicuous housing. The housing should be something that you can safely take apart and won't look out of place with a wire attached to it. Some possibilities include a power supply, a coffee maker, or an old alarm clock.  You will be hooking this up to a computer, so a private desktop or laptop is also necessary. You can even use a tablet if you have one that is compatible with USB. With cheap nanny cams regularly available, making your own hidden camera is not the most practical method. However, if you happen to have these materials on hand, it has the advantage of being free. Very carefully, use your electronics tool kit to remove your webcam's original housing. Remove all components besides the camera's lens, the circuit board, and its USB cable. Be very careful not to disconnect the lens or the USB cable from the circuit board. Keep all of these components attached. Unless you're using an object that is already hollow, you will need to make room for your camera to fit inside. Take the housing apart using any necessary tools and remove some or all of what's inside. If you're using something like an electric pencil sharpener, objects like this already have two perfect apertures built in. If not, your best option is likely to drill the holes yourself using an appropriate cutting bit. Make sure that the hole for the cable is at a seam where the housing opens. When drilling a new hole, you need to consider a spot where the camera will look inconspicuous. Pick a part of your object that is relatively dark so that the lens will better blend in. Using your hot glue gun, attach your camera and circuit board to the inside of the housing. Glue the circuit board to the bottom or side of the housing, placing the glue between it and the circuit board's solder side. Mount the camera so that the lens is up against one hole. Be very careful not to get any glue on the camera lens. Place the USB cable on its opening before closing the housing back up. Use more hot glue if you need to. Be very careful to make the item look exactly as it did before and obscure any signs that it has been tampered with. Consider covering the cable with a well-positioned book or piece of paper. Connect your new hidden camera to a computer using its USB cable and the computer's USB port. If the cable is too short, attach it to a USB extender. Install the webcam spy software of your choice and check to see if your camera is working. Test your camera by waving your hand in front of it. Can you see your hand on the computer screen? Did the software record that action? If so, try leaving the room for a while and then coming back in. Did your camera record your entrance? If so, then you have successfully made your own hidden camera.
Gather your materials. Take apart the webcam. Hollow out your housing. Make sure the housing has a hole for both the lens and the USB cable. Attach your webcam to the inside of its housing. Put the housing back together. Connect your camera to your computer.