First, we will prepare the fabric for the center of the coaster. Draw a 5 inch by 5 inch square on the solid colored quilter's cotton.

Using an air-erase pen or dress maker's pencil, measure and mark the center of each side of the square by measuring and dividing by two. Then, draw lines connecting the marks - these marks will be used for hooping.

Create a paper template of the design by printing it at full size using embroidery software. If you don't have embroidery software, you can cut a piece of paper the shape and dimensions of the design to help with placement and centering. Poke a hole in the center of the template and align it with the center point on the fabric.

There should be at least a 1/2 inch of space between the edges of the design and the edges of the square.

Spray a piece of medium weight cutaway stabilizer with temporary adhesive and smooth the fabric on top. Hoop the fabric and stabilizer together by aligning the marks on the hoop with the lines on the fabric. Attach the hoop to the machine and load the design. Move the hoop so that the needle is directly over the center point on the fabric. Embroider the design.

When the design has finished, cut out the shape - do not remove the stabilizer from the back of the embroidery. Next, cut two 1 1/2 inch wide by 5 inch long pieces of the print cotton. Align the pieces with the top and bottom edges of the embroidered piece with the right sides facing. Pin in place and sew a 1/4 inch seam along the pinned edges.

Lay the fabric flat and press the seams.

Cut two 1 1/2 inch wide by 6 3/4 inch long pieces of the print cotton. Align the pieces with the sides of the embroidered piece, right sides facing. Pin in place and sew a 1/4 inch seam along the pinned edges. Then, lay the fabric flat and press the seams.

Lay the assembled top piece on top of the quilter's cotton and the batting, pin in place, and cut out the shapes. The quilter's cotton piece will be the back piece.

Layer the pieces together with the batting on the bottom, the assembled top piece on top of the batting (right side facing up), and finally the back piece on top of the assembled piece (right side facing down). Pin in place and sew a 1/4 inch seam along the top and side edges only - leave the bottom edge open for turning.

Turn the coaster right side out in between the two cotton layers (the batting will end up in the middle). Press the seams.  Also, turn the open end in 1/4 inch, press, and pin in place. Sew a 1/8 inch seam along the open end to close the opening.

To prepare the bottom of the coaster, cut a piece of stiff felt to 5 3/4 inch by 5 3/4 inch.  Align the felt on the backside of the quilted section and pin in place.

Using nylon monofilament thread in the needle, sew a seam along the existing seams on the top of the coaster - this quilts the coaster and also secures the felt bottom in place. We stitched out to the edge of the coaster at the end of each seam.

Your project is now complete!