You can find this stitch in books like Stitches To Go and The Needlepoint Book.
Here is a close-up of the beard done in Velvet.
I believe I used a combination of one strand of Wisper and one strand of Designer's Dream, both from Rainbow Gallery, but I can't be sure and I can't check it because I gave it away. It's much like turkey work except it holds better and you have to make sure that all the stitches are fairly uniform to get a result like this beard. I tend to pack it in when I'm doing this type of stitch...so this one is really full. It's time-consuming but worth the effort if you ask me. I just wish I had kept this Santa for myself. (just kidding) Try it and let me know if you like it!