Another children’s librarian told me about this little game when we were trading ideas for a colour storytime. The original version is done with felt, but she told me that she does hers with a cut out folder and coloured paper, so I tracked down the original online and then adapted it for paper.
The original is from Fun with Friends at Storytime by Kathryn. She even wrote the rhymes herself.
Instead of making felts, I picked out a chameleon picture and traced it onto a manila folder, then cut it out leaving a chameleon shaped hole in the center of one side of the folder. Then I glued a clear page protector on the back and a googly eye to the plastic. The I just filled the folder with sheets of appropriately coloured paper in order of the rhyme (which I taped tot he back of the folder).
Easy-peasy. The kids were very good at guessing the colour and they really enjoyed themselves. I will do this again. My colleague said something about Zebra stripes.

Chameleon I traced