felted coffee sleeve thingy

I made this as a gift and I can't help but crack up every time I see it. I read an article once about Kate Winslet and a movie she was in (The Reader) where she needed a merkin. And since this thing looks like something Borat would wear, I'm not sure I can give it as a gift. It's also super-sized (30% too large??) and I've washed it maybe 8 times, so I think all shrinking has occurred. I found out today that I can cut felted knits without fear of unraveling, so I may do that.

Here's the before pic. It is pretty cool how it shrinks.

Maybe I could embroider a little something on it to make it less merkin-like. (Don't you love that word? If it didn't have such a weird meaning I'd try to incorporate into my vernacular.)

I found the pattern for free online, so they're out there.