So step two in the life cycle of a butterfly is the hatching of the egg into a caterpillar.
1 each of green and white construction paper
markers in black and yellow
Draw a simple caterpillar shape onto the white paper, making sure that it is smaller than the leaf otherwise it will hang off the edges.
Cut out your caterpillar. Draw irregular width lines across the body.
Taking your yellow and black markers, alternate coloring each stripe in black and yellow but leaving some white. You can glue a googly eye onto the caterpillar for a little more fun.
Glue the caterpillar onto the leaf.
When the eggs hatch, they eat the leaf. Take your hole punch and make a bunch of holes to simulate the leaf being eaten!