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I used a cup sleeve from a coffee house as my cup cozy template.
For the Cup Cozy: cut 2 of fabric and 1 of batting of the cup sleeve template.
With wrong sides together and batting 'sandwiched' between both pieces of fabric, sew 1/4" around.
Sew bias tape around edges.
For Mug Rug: cut 2 of fabric and 1 of batting of 4.5" square.
Repeat sewing as for cup cozy. Sew bias tape around edges.