Cut 9" square from two pieces of cotton fabric and two pieces of batting.
Lay both pieces of fabric each on a piece of batting with right sides up. Stitch around entire square close to edge.
Place squares of fabric and batting, right sides together; insert short length of ribbon in order with raw edges out about 1". Pin around all edges, leaving a 3" opening for turning. Stitch.
Press potholder flat, then topstitch through all layers.