Two kitchen towels purchased for the grand price of $2.50 at Big Lots and some fabric leftovers. I did raid the button box, but wound up purchasing 2 1" buttons at Joann's. The top portion I just "winged", but I'm pretty pleased with it. I know most towels like this, directions are to cut the towels in 1/2 and then each towel makes two hanging ones. These look a little long, but the Hubby is pleased that they are big enough to actually use.
The embroidered leaf patterns came from Embroidery Library
I have actually been thinking of making some of these for awhile and I looked into buying my own toweling fabric. I found a couple of internet sites that had some nice selections of toweling. Harts Fabric had some nice colors and plaids. Also, look at Fabric Depot as well. Of course the Big Lot's price was pretty competitive if you can find a color or design that is to your liking.