Size:
I used a thin cotton triple strand with #4 needles. My gauge was 6
st/inch and 8 rows/ inch. The bag is about 3.5" tall and about 10.5" diameter.
Other yarns, other needles, other knitters, a different size!
Pattern:
Cast on 40 stitches and divide on 3 needles: 20, 10, 10 stitches, join.
Purl one round.
Knit 4 rounds
Eyelet row: K2tog, yo around.
Knit 4 rounds
Purl one round
Knit 1 round
Increase round: K2, m1 around (m = make one stitch) = 60 stitches in round
Knit even until it's as long as you want. (I judged it by sitting the piece up on its needles and figuring out how much more to do.)
Finishing:
P 1 round
K 1 round
K 2 tog, K1 around K 1 round K 5, d dec around (d dec = slip 2, k !, pass 2 slipped st over)
K 1 round
K 3 d dec around K 1 round K 1 d dec around
K 2 together around.
Cut yarn, leaving enough to run through remaining stitches, pull tight, and finish off.
Run ribbon or something like it through the eyelets. I use two pieces and have the ends coming out opposite each other so the top can be pulled tight.