I really like the word workbasket. I'm not actually sure it's a word, but it seems like women in classic literature often have them. Maybe it's really work basket, but I like it better as a single word. If you too need a place to place to tuck your embroidery project while relaxing in the drawing room (the groovy Brady Bunch drawing room) then this is the project for you.

First, you'll need a basket with straight sides. I found mine at Joann. Baskets made of soft fibers will make your work easier, since you can sew right through them. You'll need to determine your basket's measurements before you cut your fabric. My basket is 11.5" wide, by 5.5" tall, by 7.5" deep.
You'll need two fabrics, which I'll refer to as your "main print" and your "accent print." In this case, I used pieces of vintage sheets. (The one on the left is a my main print and the one on the right is my accent print.) You'll be making two panels, each with a handle, that will be sewn together along the sides to form a tube that you'll attach to the basket. Use the formulas below to calculate what size pieces you'll need:
To determine the width of your panels, add one inch to your basket's width plus your basket's height. My panels are 20" wide (1" + 11.5" + 7.5"). Cut two strips from your accent print that are 2.5" by whatever width you've just calculated. (In my case, that's 2.5" x 20".) The pieces you cut from your main print will be this same width by however tall you want to make them. For a basket with similar proportions to mine, I suggest making these pieces twice the basket's height. In my case, the pieces cut from my main fabric are 11" x 20" (11" being 2 x 5.5").
For your handles, you'll need two strips of your accent print that are 3" wide by however long you'd like them to be. For a basket with similar proportions to mine, I suggest making them three times the basket's height. In my case, that's 3" by 16.5" (3 x 5.5"). Reinforce the handles with lightweight fusible interfacing.
You'll also need: hand sewing needles; one package medium rick rack; twill tape, ribbon or cord for drawstring; four large buttons and matching embroidery floss; disappearing ink marker; and white Perle cotton floss. Needle-nose pliers may be helpful, but are not essential.
My baskets came with ugly liners, which i removed. If your basket has liners that you'd like to re-use, detach them from the top of the basket, but leave them attached to the bottom of the basket (so they look a little like the picture below). You can then reattach them to the top of the basket when you're done adding the drawstring panels.
I decided to make some quick liners from a single piece of white linen. If you'd like to do the same, start by measuring the interior dimensions of your basket. They will be slightly different from the exterior dimensions. My basket's interior dimensions are 11" wide by 5" high by 7" deep. The width of your lining panel will be interior width, plus interior depth, plus 1". (In my case, 11" + 7" + 1" = 19") The height of your lining panel will by two times height, plus depth, plus 2". (In my case, 10" + 7" + 2" = 19")
Fold your lining panel in half, width-end to width-end and stitch both sides together using a half inch seam allowance. Clip the bottom corners, open up the seams and press them flat (top left). Open up the lining (top right) bringing each corner to a point. Use a quilting ruler to measure up the seam by half the basket's interior depth measurement. (3.5" for me.) Use a disappearing ink marker to draw a straight line across the point, pin and stitch along the marked line. (This line should be the same length as your interior depth measurement.) Repeat on the other corner. Trim away excess fabric about half an inch from each seam (lower left). Place the lining in your basket to verify fit. Your lining should be a bit taller than your basket. Fold it toward the outside until it is the proper height and press in place (lower right).
At this point, I attached my lining to the bottom of my basket by piping hot glue onto the seam allowances and pressing it into place with my fingers. The top of the lining will be secured once the drawstring panels are sewn onto the bag. Now, on to the fun stuff! . . .
Make handles: Fold your handle pieces in half, long sides together and press. Open up, press both sides to the center, refold in half, and stitch along both long edges (upper left). Lay one of your main fabric panels on your work surface with one of the wide edges facing toward you . Measuring along this wide edge, use your disappearing ink marker to indicate the center point. From this point, measure and mark 3" to the left and 3" to the right. Taking one of your handles, pin one end to the left point and one end to the right point. Tack the handles to the panel using a zig-zag stitch (upper right). With right sides together, pin your 2.5" wide strip of accent fabric your main fabric panel. Use a half inch seam allowance to sew the two pieces together, securing the handle in the process. Press handle and seam allowance toward the accent strip (lower left). Stitch a row of rick-rack over the seam you just sewed (lower right). Repeat the last three steps to make your second panel.
With right sides together, pin together the sides of your finished panels. Use your disappearing ink marker to mark 2" from on one of the two sides. (It doesn't matter which.) Using a half inch seam allowance, stitch from the mark you've just made to the bottom (top left). Stitch the entire other side. Press open both seams (top right). Now turn your seam allowances under, press and stitch in place (lower left). This will keep the inside of your drawstring panels from having any raw edges. Make the drawstring casing. Fold down the top edge by about a quarter inch, and then fold again by about one inch. You don't need to hit an exact measurement, so long as you're consistent and your drawstring will fit. The 2" space where you didn't sew the panels together will become the drawstring opening. Once you've pressed the casing in place, stitch around the entire thing along the bottom edge of the casing, backing up to and reinforce the opening.
You should now have a tube of fabric with handles, a drawstring casing and a raw edge along the bottom. Press this raw edge under by a scant half inch (top left). Now it's time to attach the fabric to the basket. Starting from the bottom of the basket, and with the bottom edge of the fabric tube (which has not yet been turned right-side-out) slide the fabric onto the basket (top right). Gently shift the fabric, centering side seams with the center of the basket's sides and aligning the folded bottom edge about 3" from the top of the basket. Once you're satisfied with the placement, open up the folded edge and secure fabric to basket using pins (lower left). Using Perle cotton, stitch fabric to basket along this pinned, folded line, removing pins as you go and keeping your stitches about 1cm each (lower right).
When you're through stitching, gently turn the fabric right-side-out, pulling it toward the top of the basket (top left). Using embroidery floss, securely sew one button at the base of each handle, making sure your stitches go all the way through to the inside of the basket and back. It may be helpful to use needle-nose pliers to pull your needle through the fabric, rick rack and basket layers (lower left). Thread your drawstring through the casing (lower right) and finish the ends as desired. If you added lining, now is the time to go back and glue or stitch the top edge in place.
Because these are workbaskets, I made little pincushions to match each one. They're made from a simple four patch block (2.75" squares), a white linen back and bamboo fill. I finished them each with a vintage button.
If you make one of these, I hope you'll consider posting a photo in my Flickr Pool!