I crocheted the bag at a fairly loose tension, then put it in a mesh bag in the washing machine on HOT water, cold rinse .I did use laundry detergent and added a pair of old jeans for balance.
Then, when satisfied with the appearance of the felt, I let it air dry flat, found some fabric my my stash, and cut out a lining about one inch bigger than the bag. Also, I added a fabric covered rectangle at the bottom of the bag.
To finish it off, I crocheted, but didn't felt the floweres for around the edge. Those were stitched on BEFORE the lining was added.It may sound like a lot of work, but it as really easy and it went quickly because of the larger sized hook. I used some Lopi wool that I already had, and bits and pieces of leftovers for the flowers. Any basic bag pattern will work. It definitely gets attention!