I was on one of my favorites blogs http://americaninitaly.blogspot and Zia Sara had a mug cozy that she found somewhere and she crochet two for her mugs. I had been searching for something to do after I joined http://http://groups.yahoo.com/group/spoolknitter and my spoolie was available, so I got to thinking, I can do this cozy with the cord I knit on the spoolie.
I started knitting away and once I had enough cord to start the bottom (top pic on the left) I started rolling it and sewing it together, since I didn't know how long a cord I needed I made the cozy as I went along knitting some, sewing some and shaping some. I loved the challenge of shaping it and getting the loop around the handle and seeing if it would work or not, it took some manuvering but in the end I'm really happy with it, I think it turned out really cute.
I used a 4 peg spool knitter I got at Dollar Tree (in the toy section) last year, it's see through plastic (which is a feature I really like as I can see what the cord looks like as I knit, I wish my knitting boards were like that) with wire pegs, Peaches and Cream cotton yarn in Sea Breeze, my KK hook and about 4 hours total.
I think this would make a cute gift for Mother's day.