The mug rug can easily become a pot holder simply by adding Insul-Bright batting and a bit of ribbon or cord for hanging. Simply fold the ribbon and stitch both ends into the seam when adding the backing.
Simple patchwork gives you plenty of color options. Choose an array of fabrics in colors and patterns you love together. Every mug rug or pot holder can be completely different and have its own personality.
The tutorial, from Candace at Saltwater Quilts, is for a mug rug that finishes at 9 1/2″ x 9 1/2″, including the ruffle.