find your favorite mug. remember that all mugs are different sizes and that this will basically custom fit just this mug...unless you use a standard size. in this case, i used a 20 oz mug.
place the mug on the color of felt you'd like to use for the bottom and trace a circle.
use your scissors to cut it out. you will use it later so just put it off to the side.
wrap the felt around your mug to determine the height and width you need. cut a piece of each color so that it evenly goes all the way around the mug with about 1.5 to 2 inches over.(for the handle) the piece that the design goes on, stays whole. the other, cut in half. ( for me, the red stayed whole to put my logo on and the black i cut in half)
using a seperate piece of felt, find the design you'd like to use and cut it out. in my case i used my company logo. :-)
carefully determine the middle of the piece you'd like to put it on and sew it on. (in my case, that red piece i left whole)
**if you'd like to make it sort of 3-d, push some stuffing into any holes you've cut in your design, if you did, and sew them up as well.
sew a piece of the color you cut in half before, to each side.
(sorry not too good a pic) wrap the whole thing around the mug and lay flat next to the handle on one side with the overage hanging over the handle on the other. use your fingers to determine where the handle begins and ends under the felt and lightly draw a line. determine the width and cut out the pieces where the handle needs to go. once you've cut them out, it's easier to see if more needs to be cut.
pulling it snug, determine where the buttons would need to go to fasten it and draw a small line. cut a hole for the button to go into and sew them on.
starting under the lower part of the handle, sew downward. put on the circle for the bottom that you cut earlier, and continue sewing around the bottom. if it seems to be too small for the felt going around the mug, tuck the felt underneath the circle and pin it.