It wasn't too difficult to make, and if you make it I'd love to hear all about yours! You may decide you want different colors or sizes than the one I made. Post your comments on my blog!
Here are the directions (read through before you begin):
You will be using the yellow loom and creating a tube panel on 32 pegs, using a loom clip. Or you may decide to just use the entire loom to make the bag bigger.
To make the bag: I cast on 30 pegs (leaving off the corner pegs) using Red Heart white yarn with a 1 over 2 e-wrap stitch and knit off 2 rows, then increased to 32 pegs, because I wanted the bottom to be rounded a little like it was the bottom of his head. You could probably accomplish this same effect by doing a drawstring cast on on 32 pegs and then continuing with e-wrap stitches for the remainder of the piece.
Knit off 45 rows or until the bag reaches 6 inches. You have reached the top of the bag. For the corner peg and first 2 pegs on each side of the loom, and for the center 6 pegs on each side of the loom, you may choose to bind off using some yarn threaded on your yarn needle. For the center 6 pegs I chose to carry the yarn over to the adjacent pegs and knit off. Since the yarn was not very loose, it was very difficult to do this, and you can see the results vary slightly on either side of the bag.
To make the ears: you will knit off 60 rows on 4 pegs. For example: Center corner peg is number 1. Going clockwise on the loom, you will knit off on pegs 4-7 and 11-14, and on the opposite side of the loom knit off on pegs 20-23 and 27-30. For row 56, decrease yarn from peg 4 to peg 5 and peg 7 to peg 6 and knit off, then knit off 5 rows. Do this for each ear. Leave a 5 inch tail on each ear. For the pink inside the ears, simply make a pink yarn I-cord for 55 rows and sew into the hollow space in the ear.
For the face: I simply drew a rabbit face on a piece of paper and then, using a pencil, gently traced each feature on as I needed it. For example: I traced the eye onto the bag and then sewed the black yarn over what I traced, starting to sew from inside the bag and knotting off when I was done. I went over it again with the yarn to cover any bare spots between the sewing. I didn't have Red Heart black yarn to use so I used my black Homespun to create the black for the mouth eyes and nose. The whiskers are a navy blue vanna's choice yarn, and the tongue is red heart cherry red. The eyes are Lion Brand Hometown USA Charlotte blue and Red Heart blue. The tooth is a 3 peg e-wrap 1 over 2 stitch for 5 rows.
Now that you've knitted and knotted everything inside the bag, trim the tails and tie the ears together by the tails (or sew the ears together at the top using the tails). And you're done!