Easy to knit with simple instructions of knit and purl. This is cosy that just slips over the mug while easing the handle though the gap. I omitted buttons or ties as thought this would be an easier version.
This mug wrap is more of a decorative item rather than practical.
A mug could be filled with sweets or chocolates and given as a gift.

Idea for a little gift: fill mug with sachets of coffee and hot chocolate and individual pre-packed biscuits, soaps and small items of toiletries, sweets etc
Another idea is instead of using a mug, sew all the seam up and cover a paper or plastic glass and use as a table decorations.

I am sure there are lots of ideas to fill the mug with.