To add a level of difficulty. I would add number cube to see how many letters to cover up at a time. Use tally marks, dots, numerals ect Free "find the letter" alphabet worksheets! Get them for uppercase, lowercase, and both!
Initial wrapping & Kraft paper: wrapped a few of my presents like this this Christmas. If there was more then one person with the same initial I made the letter into a tag rather then glue it on to decrease confusion