IPA: /ˈniːdəlˌwɜːrkər/
KK: /ˈnidəlˌwɜrkər/
A person who uses a needle to create or repair items, often involving sewing or embroidery.
My grandmother is a skilled needleworker who makes beautiful quilts.
Needleworker → It is formed from "needle" (from Old English *nǣdl*, meaning a small, slender tool for sewing) and "worker" (from Old English *wyrcan*, meaning to work or perform). A needleworker is someone who works with a needle, typically in sewing or embroidery.
Think of a 'small tool for sewing' ('needle') and someone who 'works' ('worker') with it — that's what a needleworker does.
No commonly confused words.