Here are instructions on how to make your very own felted/fulled bag. For those of you who aren't familiar with the term "fulled", it's basically shrinking wool. You know that sweater you accidently shrunk in the wash? You fulled it.
Cable-Band Bag - free pattern by DenyMacMart
Dumpling Bags by Sharon Dreifuss - one of 6 Free Felted Knitting Patterns. I love felting. taking something bigger than my son and making it the size of a small gift bag is kind of empowering.