Cut the yarn, leaving a 12 inch tail. Thread on a needle and pull through the loops on the pegs.
Take the loops off the pegs. Pull the yarn tail tight. This will gather all the stitches to make the bottom of the bag. Do a couple of slip stitches in the bottom to tie off.
Ears: Wrap the yarn on 5 pegs and work back and forth, using these five pegs until you have knitted 7 inches.
Remove in the same method as the purse. Tie off. The top of the ears will be the tied-off end. -- Make 2 of these.
Handle: Use the same method, but only 3 pegs.
Work back and forth on these 3 pegs until you have 12 inches for short handle or 48 inches for long handle (remember that the handle may stretch, so you can make it a little shorter).
Sewing the parts together: Laying the purse flat, pin one side of the handle to the left inside top of the bag.
Pin the other side to the right inside top of bag.
Using only the Baby Cloud yarn, thread the needle and sew handle ends in place.
Place each ear next to the front of each handle; pin and sew in place.
Thread the ribbon on the needle and sew 1 inch from the top, starting in the center front and sewing completely around the bag.
This makes a draw-string effect to close the purse.
Pom-poms: Using the Knifty Knitter Pom-pom maker, you can choose the size you would like for the nose and the cheeks.
Glue the cheeks on using the glue gun and placing them close together. Glue the pink pom-pom in the middle of the cheek pom-poms.
Project designed by Carol Malek, reprinted courtesy of ProvoCraft.com