linkhousemedia

This plugin was initially designed as a theme function but we thought it might come in handy for someone else. It is designed to use the following plugins:
<ul>
<li><a href="https://wordpress.org/extend/plugins/custom-post-type-ui/" rel="ugc">Custom Post Type UI</a></li>
<li><a href="https://wordpress.org/extend/plugins/taxonomy-images/" rel="ugc">Taxonomy Images</a></li>
</ul>
Of course you can create your own custom post types and taxonomies but the Custom Post Type UI plugin makes very light work of it.
The plugin creates a widget for adding featured posts. There are other plugins that do this but Featured Custom Posts allows for custom post types and taxonomies. It was created to show featured products that were created as custom post types.
Features
<ul>
<li>Select number of posts to display (default: 10)</li>
<li>Post Type</li>
<li>Custom Taxonomy</li>
<li>Custom Taxonomy Term</li>
</ul>
New In Version 1.1
<ul>
<li>Added Permalink Base for post URL (Defaults to post’s GUID)</li>
<li>Added Post Title as the link text if Taxonomy Images plugin isn’t present</li>
</ul>
Example Usage
Custom Post Type: “products” 
Taxonomy: “product-tags” 
Taxonomy Term: “featured”
In this example our custom post type of “products” allows us to add products in a similar way to posts. Now with our custom taxonomy of “product-tags” we can tag our products with the tag “featured”. Plug this information into the widget via the wp-admin area and you’re all set!
Future Updates
<ul>
<li>Allow for multiple taxonomy terms</li>
<li>Add thumbnail size support</li>
</ul>

Featured Custom Posts Widget

Widget that allows custom post types and taxonomies to be displayed.  Works well with Custom Post Type UI and Taxonomy Images plugins.

codersantosh

AcmeIT

AddonsPress

If you have already familiar with the Categories widget, then You are already familiar with it too. 
It just lets you choose any taxonomy you have in your blog, for example, Tags, custom taxonomy ( Eg: Location, Product Categories, Product Tags etc… ).

Taxonomy Term Widget

Perfect

Add an advanced widget to your WordPress blog, like an extension of the Categories widget.

Featured Custom Posts Widget vs Taxonomy Term Widget