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2. Sew up the little pouch out of your self fabric, but sew it into the side seam of the lining bag. LEAVE THE BOTTOM HEM OF THE LINING BAG UNSEWN. See the Serge the Charlie Bag for basic instructions (Note: You can use these instructions but use a straight stitch machine). Check out Steps 6-7 of Sewing a Charlie Bag with French Seams

for doing the little pouch with French seams. Also, you may want to enlarge the little pouch, since, basically, two Charlie bags have to fit in it.

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Burdastyle

http://burdastyle.com//techniques/line-the-charlie-bag/technique_steps/2