Another quick post on a christmas present. 
This is the Mug and French Press Jacket by MK Carroll knit for my Mom. I had a couple false starts with this as I found the increase rate for the bottom much to fast and it caused the circle to ripple. I eliminated one "increase wedge" out of it and it then laid flat. However the only mugs I could find were narrow at the base with flared out sides so as the pattern was written it was too big for the base. I only increased until I could do one less repeat of the cable pattern. 
Because the sides do angle down so much the jacket works a little better when the closure loop is secured over the handle instead of through it. It keeps it from slipping off. Otherwise I'd recommend using a more flat sidded mug if you have one. Overall though it's a very pretty pattern. I love the way it looks.
Yarn: Cascade Yarns 220 Wool
Needles: US size 6 (4 mm)
Mods: Worked 1 less increase section on base, overall smaller by one less cable repeat.
Cute.. that's a great gift idea!
Awesome mug cozy! I made one of those once for a swap partner, and I'm still thinking I need to make a bunch to keep. Who doesn't love a good mug cozy?!