Here's a small breakdown of how to make these:
Chain enough stitches to wrap around the base of your mug (in my case, 30). Join into first chain to form a loop. CH 2.
In my case, I didn't have much room below my handle so I moved onto "the next step". If you have some space, DC in each ST until you reach the bottom of your handle.
"The next step": DC in all but your last 4 stitches (in my case, 26 DC). This will leave a small space for your handle to be. CH 20. Slip stitch into the base of your first chain, turn. You just formed your first loop!
DC back and forth (26 ST) until you reach the top of your mug. CH 20 to form another loop, slip stitch into the base of your first chain. This time, SC around your entire cozy to finish it off.
Sew on a cute little button and have a cup of tea :)
Mug cozies are the perfect way to spruce up simple, Walmart mugs into personalized, pretty mugs.