This was a fun little bag I designed when I wanted to make something besides socks from sock yarn. My schematic for this pattern is a little ugly; just follow the numbers of the squares to be completed regardless of whether the arrows show up in your browser, and all will be well. I appreciate any feedback, and as always am happy to answer any questions you may have as you knit this bag.
If you make it, holler out so I can see it. Knitpicks has discontinued this particular yarn, but really you can make it out of any multicolored feltable (not superwash) wool you have, using the needles appropriate for your yarn, as gauge is not crucial on this bag. The finished bag would of course vary in size. Play with various yarns and various buttons and handles, and the possibilities are pretty much endless.
Happy Knitting ;)