Pick out yarn and needles for the heaviness of the cozy you would like to make. If you're doing a Summer Cozy for iced drinks, try a medium-weight cotton or cotton blend that will absorb condensation. For a Winter or cold weather cozy to use on hot drinks, try a thicker weight of yarn, such as the hand-worled wool in the photo.

Your needles should be appropriate to the weight of the yarn you select.

Keep in mind that if you choose heavy yarn and large needles, you will only need to cast on a few stitches.

Cast on your stitches. Get a mug that you will use with your cozy... or use a standard mug to measure for gifts.

You want to leave space at the top and bottom of the mug, so cast on the number of stitches that is the equivalent to that height.

Try knitting a few rows and casting off to see if you have the right gauge for the project.

Now you're ready to start knitting the cozy!

Once you have cast on the number of rows that you need for the height of your cozy, begin knitting in any pattern you choose.

Keep knitting until you think you have almost enough length to wrap around the mug or cup. Try wrapping it around and determine how many more rows you will need to complete the wrap.

Leave a half inch to accommodate the handle of the mug (See photo).

Cast off.

Now you will want to sew on some elastic loops on one end of your cozy that are large enough to accommodate whatever buttons you have chosen for your project. These buttons are the functional buttons that keep your cozy on the cup or mug.

If you want to add a larger decorative button to your cozy, attach it with a few stitches on the front, back or side of the mug, depending on what looks good.

You're all done!

If this is a gift, be sure to package it in some simple, pretty packaging such as a clear craft bag with a bow, or additional yarn tied around. The gift itself is pretty enough to show through!