I'm probably the last person to discover this nifty craft, but I love it anyway.
I found this set of Cameo punch needles on Ebay. The set includes a large, medium, and small needle. The small will carry 1-3 strands, the medium 3-6 strands, the large 6 strands and larger types of yarn.
I have a cheapy punch needle that came with something I bought and I really enjoyed poking holes in my fabric with it. I love regular embroidery, but this adds another dimension to an already great type of handwork.