This cute little bag packs a lot of knitting technique into a single project: stranded colorwork, steeking, and applied i-cord work together to create a colorful bag inspired by old-fashioned wallpaper.
In order to achieve the vertical stripes on the finished bag, the body is worked sideways, in the round, using stranded colorwork to make the stripes and roses. The body is then steeked and the first and last rows are grafted. The bottom is worked in the round from picked-up stitches, and the top edges are finished with applied i-cord, which is then extended into i-cord handles.
Directions for a simple lining are included in the pattern, and the reader can refer to more detailed instructions on my blog for a lining with pockets: http://remilyknits.wordpress.com/2012/06/27/tips-and-tricks-bag-lining-with-built-in-pockets/.