Materials:
[approx. retail cost including handle will be about or a little under $70]
Bag:
3 - 50 gr balls (150 grams) CPY Taos in #02 Gila Bend (Color A)
5 balls of CPY Aran: 1 - 50 gr ball each in #1021 Putty (Color B); #1006 Antique Rose (Color C); #1004 Yellow Gold (Color D); #1010 Lichen (Color E); #1003 "Pale Pink (Color G)
1 - 50 gr ball CPY Deco-Ribbon #120 Celery (Color F)
1 CPY Bamboo or DAISY Circular Needle 35 or 40" US size 13 (9.0 mm) Circular needle
2 US size 13 (9.0 mm) double pointed needles for I-cord embellishment
4 stitch markers, one of which should be a uniquely colored one to mark the
beginning of rnds.
1 pair Crystal Palace Yarns Handbag Handles #HD-57 Bamboo Effect
Tapestry needle, Sewing needle, Coordinating sewing thread

Note: A second colorway of this bag is HERE. The back is a deeper color and the flowers are
Aran Print #2107.

Floral Embellishments:
1 50 gr ball CPY Aran in #1003 Pale Pink (Color G)
Remnants from Color D, Color E, and Color F above
1 CPY Bamboo or DAISY Circular Needle US size 7 (4.5 mm) circular needle, 35" long or longer
1 set US size 7 (4.5 mm) double pointed needles
Tapestry needle, Sewing needle, Coordinating sewing thread

Abbreviations:
beg-begin, BO-bind off, CO-cast on, cont-continue, dec-decrease, G st-garter stitch (knit every row), K-knit, Kf/b - Knit in front & back to inc 1 st, P-purl, PM-place marker, PU-pick up, rem-remain(ing), rep-repeat, rnd(s) - round(s), K2togTBL - K2 tog through back of loop, st(s)-stitch(es), tog-together,  St st - Stockinette Stitch, RS - right side, WS - wrong side; RH-right hand, LH-left hand, Sl-slip one, SSK - sl, sl, k - a left slanting dec [See this link for dec-inc information]

Dimensions:
Before felting, the bag measures 16" wide x 15" tall x 5" deep
After felting, the bag measures 13½" wide x 10" tall x 3½" deep

Bottom of bag:
With circular needle, and holding one strand of Color A and one strand of Color B together, CO 42 sts and work 28 rows in garter st (knit all rows).
Sides of bag:
PM after the last st knitted, and then cont around the bag from there, picking up 14 sts across the first short end. Place a marker and pick up 42 sts across the CO edge. Place a marker and pick up 14 sts across the remaining short edge, and end by placing the uniquely colored marker to designate the beginning of the rnds. (112 sts)

Join and begin to K in the rnd in St st, always with two strands of yarn, one of which will always be Color A. So that it will be easier to K on the I-cord bindings on the side edges later, we’ll knit in a visual map. To do that, simply make the first st and the last st on the front and back of the bag a P st. In other words, for each rnd, you will *P1, K40, P1, slip marker, K14, slip marker* and then rep. This creates a ridge of P sts on each side of the front and back that we will use for picking up sts for the applied I-cord. For the color sequencing, when Color B runs out, attach Color C and cont knitting. When Color C runs out, attach Color D to finish the body of the bag. When Color A runs out, always replace it with another ball of Color A.

To shape the bag, K for 8" and then begin decs as follows:
Rnd 1: *P1, SSK, K to the last three sts before the marker, K2tog, P1, K14* twice (108 sts)
Rnds 2 and 6: K
Rnds 3-4: Rep Rnds 1 and 2 (104 sts)
Rnd 5: *P1, Sl, SSK, PSSO K to the last 4 sts before the marker and then K2tog, return to the LH needle and then pass the 2 st over the st just made and Sl that end st to the RH needle, P1, K14* twice (96 sts)
Rnds 7-8: Rep Rnds 5 and 6 (88 sts)
Rnds 9-10: Rep Rnds 1 and 2 (84 sts)
Knit 8 more rnds after Rnd 10.
BO sides and knitting top flaps:
K28, BO14, K28, BO14. Let the second set of live sts rest on the cable while you work on the first set. Work 8 rows of St st beginning on the RS of the first set of 28 live sts, then BO. Cut yarn, attach to the RS of the 2nd set of live sts and rep.

Attached I-cord edge bindings:
These will be K using two size #13 DP needles and one strand of Color A held tog with one strand of Color E. Place the bag in your lap, RS facing and the top opening nearest your abdomen. To work the attached I-cord, CO 3 sts to the needle, and then starting at the right hand side in your lap, PU one st on the edge onto the RH needle after the 3 CO sts.

Slide the sts to the RH end of the needle, switch it to your left hand and work the attached I-cord as follows: K2, K2togTBL. Knitting the last two sts together through the back loop accomplishes two things. First, it attaches the I-cord to the bag, and second, it twists the last cord st over the picked up st to hide it and help it appear seamless. Cont down the flap extension, PU a total of 8 sts along that edge. When you get to the main body of the bag, you will then have your knitted-in roadmap to follow for PU sts. Rather than pulling a loop through to make a st, simply PU the P bump and place it on the needle after the 3 cord sts and then K as instructed above. After you’ve picked up that first P bump and put it on the needle, the rhythm of doing this becomes: *K2, K2togTBL, PU the bump*. It’s a catchy little tune guaranteed to give you a straight line.

When you get to the bottom of the bag, simply PU the P bump from the end of each G st row (there should be 14), then work your way back up the other side of the bag on the mapped P bumps, ending with PU and working 8 sts from the flap. Cut yarn and pull through all 3 sts on the needle, and weave in the ends. Rep for the other edge of the bag.
[See this link for a pictorial view of making applied I-cord.]
Handle fasteners: (make 2)
Using the size 7 circ needle, Deco-Ribbon, Color F, and working in G st, K a rectangle that is 7 ½" wide and 3" tall. These rectangles will be used after felting and during finishing to attach the handles to the top of the bag. You will just hand sew the rectangles to the inside top of bag and wrap them around the straight part of the handles and sew to the bag. You can see part of one of these rectangles peeking over the edge of the bag in the top photo here.

Finishing:
Weave in your ends and then felt the bag using your preferred method. [Note: Taos is a quick felting yarn - check your bag often as you felt it - over-felting will make a smaller thicker bag.] Shape to dry and then embellish with knitted vines, leaves, and flowers. To attach the purse handles, wrap them around the base of the handle and seam across the open edge, then stitch that edge to the inside top of the bag, just below the top edge. Sewing it above and below the handle will make a more secure attachment.
Vine:
Using Color F and the size #7 double pointed needles, CO three sts and work 18" of I-cord. Sew to the front of the bag with coordinating thread and a sewing needle.
Bobbles:
Row 1: Using Color E and the size #7 DP needles, CO one st and then K first into the front and then the back of that st until there are 7 new sts created from that one. Turn.
Rows 2, 4, 6, 8: Purl
Rows 3, 5, 7: Knit
Row 9: SSK, Sl, K2tog, PSSO, K2tog (3 sts)
Row 10: P3tog
Cut yarn, pull tail through the remaining loop. Use the yarn tails and tapestry needle to attach the bobbles to the bag along the vine. Make three using Color E, and them make two using Color G and two strands of yarn instead of one for a slightly larger bobble.
Flower buds:
Using the size #7 circ needle and Color G, CO 40 sts and K as follows:
Rows 1, 2, 3, 5, 7: K
Row 4, 6, 8, 10: P
Row 9: Switch to Color E and K
To BO, pass each st over the last P st one at a time until that st is the last one remaining. Cut the yarn, pull the tail through the loop. Curl the bud and use the yarn ends to tack together, pulling all remaining ends down through the center and using the tails to attach to the bag along the vine. Make three.
Leaves:
Using the size #7 DP needles, CO 3 sts with Color F. Work 4 rows of I-cord and then work flat, back and forth, as follows:
Row 5: Turn and P3
Row 6: K
Row 7, 9, 11, 13, 15, 17: P
Row 8: Kf/b, K1, Kf/b (5 sts)
Row 10: Kf/b, K3, Kf/b (7 sts)
Row 12, 14: K
Row 16: SSK, K3, K2tog (5 sts)
Row 18: SSK, K1, K2tog (3 sts)
Row 20: S1 K2tog, PSSO (1 st remaining)
Cut yarn, pull tail through and weave in ends. Make 3. Use sewing thread to attach to the bag along the vine.

Large Flower:
All three layers of this flower will be knitted with Color G, one at a time, and using the Magic Loop Method and the Closed Bottom CO. (Mini-tutorial found here: http://www.straw.com/cpy/patterns/bags/bag-deco-tri.html ) Use the size #7 circ needle.
Bottom layer –
CO 12 sts, evenly divided on the two halves of the needle.
Rnds 1, 3, 5, 6, 7, 9, 10, 11: K
Rnd 2: Kf/b all sts (24 sts)
Rnd 4: Kf/b all sts (48 sts)
Rnd 8: Kf/b all sts (96 sts)
Rnd 12: Kf/b all sts (192 sts)
Bind off in P and weave in ends.
Middle layer –
CO 8 sts, evenly divided on the two halves of the needle.
Rnds 1, 3, 4, 6, 7, 9, 10, 12, 13, 14, 16, 17: K
Rnd 2: Kf/b all sts (16 sts)
Rnd 5: Kf/b all sts (32 sts)
Rnd 8: Kf/b all sts (64 sts)
Rnd 11: *K2tog* (32 sts)
Rnd 15: *K2tog* (16 sts)
Rnd 18: *K2tog* (8 sts)
Cut yarn and pull the tail through all 8 sts and tighten. Flatten the centers together and pull both yarn tails to the same side. Secure this flattened layer to the bottom ruffled layer (RS of each facing up) by pulling the yarn tails through the center of the bottom layer.
Top layer –
CO 6 sts, evenly divided on the two halves of the needle.
Rnds 1, 3, 5, 6, 7, 8, 9, 11: K
Rnd 2: Kf/b all sts (12 sts)
Rnd 4: Kf/b all sts (24 sts)
Rnd 10: *K2tog* (12 sts)
Rnd 12: *K2tog* (6 sts)
Cut yarn and pull the tail through all 6 sts and tighten. Flatten the centers together and pull both yarn tails to the same side. Secure this flattened layer to the other two layers (RS of each facing up) by pulling the yarn tails through the center of the bottom layer.
Center Bobble –
Row 1: Using Color D and the size #7 DP needles, CO one st and then K first into the front and then the back of that st until there are 5 new sts created from that one. Turn.
Row 2, 4, 6, 8: P
Row 3, 5, 7: K
Row 9: SSK, K1, K2tog (3 sts)
Row 10: P3tog
Cut yarn, pull the tail through the rem loop and use the two yarn tails to secure the bobble to the center of the flower, and pull rem yarn tails to the underside. Tack the flower as necessary to help it hold your preferred shape. Sew the flower to the front of the bag at the bottom of the vine. 

Copyright 2006 Crystal Palace Yarns/Straw Into Gold, Inc. - We are happy to share this pattern with knitters. The pattern may be used for non-commercial personal or knitting guild use. It is not to be used in any publication in print nor should it be reproduced in electronic/digital format without permission. Knitting shops carrying CPY Yarns Taos and Aran are welcome to print and share this pattern with customers of our yarns.

Retail shops in the USA should contact CPY Wholesale for information on purchasing Crystal Palace Yarns - email cpyinfo -at- straw.com

or write to:
Crystal Palace Yarns, 160 23rd St., Richmond, CA 94804
phone: 510-237-9988, fax: 510-237-9809