This is something I've wanted to make for ages as my pegs are all over the place. I looked some pics on the internet for inspiration, what kind to make.
A quilted one? An all closed one with small opening? Or a frilled one?
At the end I choose the frilled one but with some alterations and no frills, thank you. The frilled bag's original pattern is in Katie Eben's book, Fabric scrapping.
First I chosse two fabrics, one for the outside and another for the lining. Cut out a 30x40 cm, a 15.5x30 and a 25.5x30 cm piece from each.
Sew the matching pieces together right sides out. Hem the top of the front bottom piece and the bottom of the top front piece. You know...
Then assemble your bag so the lining is facing outside and the two top pieces are overlapping a bit at the opening. Pin together securely.
Put a child's hanger at the top and draw its outline on the fabric.
Sew around on the hanger's line and at the edges.
Cut around leaving a little seam allowance.
And voila, here is your finished peg bag, you just have to slide in the hanger (if you didn't leave an opening for the hanger at the top - about 0.5 cm - now is the time to cut this).
You can decorate it to your taste with embroidery, patchwork or frilles - whatever your fancy ;)