As I was looking for some handmade stocking stuffer ideas on Pintrest, I came across these felt hankie holders made by Martha Stewart.
It gave me the idea to create some knitted ones. Here is a pattern I came up with while making some.
worsted weight stash yarn in 2 (or more) colors (or any yarn that you prefer for the project)
a pair of straight needles US9 ( or an appropriate size for your preferred yarn)
a yarn needle
Using an i-cord cast on, cast on 20 stitches in the contrasting color (cc).
Switch to the main color (mc) yarn and knit in stockinette stitch for 6.5″ ending with a knit row.
With the cc yarn purl on row.
Bind off using an i-cord bind off.
Turn the knitting wrong side out and fold so that the two i-cords overlap slightly in the center and sew the top & bottom shut with a mattress stitch.
Weave in all the loose ends.
Embellish with a crocheted edging, or embroidered designs. You could also add some ribbon or buttons.