The purse is made in the round with DPNs.

The original cable pattern (worked flat) can be found here:
http://www.knitty.com/ISSUEwinter03/PATTcoronet.html
I adjusted it to this particular design and to knitting in the round.

Techniques used:
Long tail cast-on, stockinette stitch, kfb, knitting in the round with double-pointed needles, cables, k2tog, yo, seed stitch.

Finished size of the purse:
Bottom diameter – 14 cm
Height (when tied) – 18 cm
Height (when untied) – 20 cm

Enjoy!

I would be grateful for any feedback ;)