Dish Towel Bag

I'm totally inspired by this idea for a tote made from a dish towel and extra fabric. But have been looking for dish towels for months now and haven't seen what I like. Still, seems like a short cut to a cute tote. Perhaps as a teacher gift or hostess gift?
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UPDATE: I finally made this, but have to tell you... it is just a basic tote and a small one at that. IF you find a dish towel that you fall in love with but don't know what to do with it, then YES, this may be the right tutorial. But I really stretched it and ended up using the towel on the inside instead of the outer layer and really would have enjoyed working with 2 fabrics instead of the dish towel.

But, now I know I can do totes! And Jen (in case you are reading this), should this go to Mom, Ann or Ellie? It can only fit about a book, reading glasses and a little more. Let me know!