Added Oct 26, 2008
I (mostly) followed Nayantara’s instructions for a bag made from a pillow case and this is the result. I sewed the top ends together for the strap instead of tying a knot and used double-sided iron-on interfacing to stick the appliqué on. I then sewed around the edges of the appliqué with a small zig-zag stitch.
The appliqué is from the same material from which I made my wallet, so now I have a matching bag and wallet :)
An old pillow case, a cut-out from some IKEA material, double sided iron-on facing
Thank you nayantara for the brilliant instructions!
And thanks to the girl in the sewing shop who told me about double-sided iron-on interfacing. It’s pure gold that stuff!