Well here's one idea....
What you need: Felt (I used 100% wool felt cause I had it, but other options include an old felted sweater, craft felt, heck even 2 pieces of cotton will work)
Insanely Basic sewing skills and/or needle felting supplies
Cardboard coffee cozy from local coffee shop
What you do:
Cut your fabric using the cardboard cozy as template. I used Felt because I was mass producing and had about 2 hours to do a ton. Basically I just didn't want to sew anything!
If you are not using thick 100% wool felt cut two pieces of fabric for every one cozy that you want to make (if using cotton cut two pieces cotton and one piece batting for middle cushioning)
If using wool felt needle felt the unfolded edges together. If using anything else pin the pieces together and sew around then fold and zigzag stitch the edge, you can either pin right side to right side and flip inside out or just leave the stitching as decorative. For cotton I would put one piece right side down, batting, cotton right side up sew around then fold and zigzag edges. (you see how the felting is less time consuming and mindless?)
Enlist surly husband to help needle felt design onto each cozy. I used pre made pieces but you can easily just use roving if you have it. With other fabrics sew on appliqué or embroider something pretty (or leave as is!)
Total Cost: 100% wool felt sheet :$3.49 for a sheet big enough to make 6 cozies (I used scraps from other projects)
Pre-packaged felt pieces for decorations 99 cents- $2.99 depending on what you buy (the leaves you see were $2.99 for 8 leaves)
Each cozy: less than a dollar I'd say.
I gave these to my knitting group as they fit around the handleless mugs in our meeting place, as well as standard disposable cup.