The caterpillar is eating the leaves of an Eastern Red Cedar, Juniperous virginiana, which is actually not a cedar at all but is a Juniper.To see pictures of other caterpillars that have stinging hairs go to:
It is a beautiful pink and yellow moth when it is an adult.
This caterpillar is quite large.
It is bigger around than my index finger and almost an inch longer.
To see an excellent photo go here.