Disclaimer: I did not create this pattern.

Step 1: Gather Your Materials

Step 2: Cutting/Prepping Fabric

Cut two 9" squares from fabric
Cut two 9"x6 1/2" rectangles from fabric
Cut one 9" square from thermal batting
Cut one 9" square and one 9"x6 1/2" rectangle from quilt batting
Cut and make 1/2" double-fold bias binding about 45" long (2" wide when unfolded)

Place squares of fabric wrong sides together.
Sandwich the squares of thermal batting and quilt batting between the layers.
Quilt through all layers by sewing horizontal lines, spaced about 1 1/2" apart, across the width of the potholder.

This is the pocket piece

Add bias binding to one long edge of the pocket piece
Place one raw edge of the bias binding right sides together with the pocket edge.
Stitch with a 1/2" seam allowance, in the first fold of the binding.
Press binding up

Fold the binding over and line up the folded edge on the back of the pocket so that it covers the stitching line from the front and extends about 1/8" beyond it. Clip it or pin it in place.
On the front side of the pocket, stitch in the ditch (where the seams meet), catching the back side of the binding in the stitching.
It would be best to hand-stitch the back side of the binding, to get the straight line on the binding.

Place the pocket on the square potholder piece and pin it in place.
Begin sewing the binding to the top left corner of the pot holder, right sides together as you did on the pocket.
At each corner, stop and fold the fabric 90 degrees and tuck it under the presser foot.
Slowly make a couple stitches catching the folded corner
Leave the needle down and pivot the potholder
Move the binding so that you don't catch any extra layers as you round the corner.
Continue sewing the binding until you reach the first corner.
Stop and backstich right at the edge of the first line of binding.

Trim the corners
Press and fold the binding to the back, lining up the edge about 1/8" past the line of binding stitching, as you did with the pocket.
Trim the beginning of the binding to meet the edge of the potholder
Trim the end, leaving a 6" tail.
Tuck the beginning edge into the tail binding.
Fold the end of the the binding tail around and tuck it in the corner to form a loop

In this part you can either hand-stitch the back of the binding or use the machine to sew.

If you machine stitch:

Topstitch along the folded edges of the tail and tuck it back in
Machine stitch on the front of the potholder, in the ditch, all the way around.
Try to stop and make nice tucks in the corner as you go, or hand-stitch the back of the binding using a ladder stitch

You can also tack the corners with little hand stitches too

When you get to the loop, hand-stitch all of the loose ends including the inside of the loop