A few years ago I made all of my sisters knit bags for Christmas. This is a pattern I wrote myself, though it was unfortunately lost due to a leak in my apartment ceiling (more like a rainstorm!).
It was a fairly simple process to knit the bag. I wrote a pattern with cables and ribbing then knit the body as a rectangle. I stitched up the sides about 3/4 of the way. The bag was fastened to the circular bamboo handles with a whip stitch. All of the hard work really went into the finishing.
I found a gorgeous silk fabric in a tiny store in NYC’s garment district. It is a cream color with beautiful cream and pink stitching. This was used to create the lining, the inside pocket, and also to cover the removable-base (made from layers of sturdy cardboard). I added a magnetic snap closure before stitching the lining to the inside of the bag.
The three bags were identical except for the brooch on the outside – my sisters each had a different color and shape cameo brooch as the finishing touch.