Martha Stewart Weddings, Volume 37 2006
Cut fabric 8 inches wide; cut it and eyelet to be 13 inches long (so it wraps around box and overlaps by 1 inch).
Lay eyelet on top of fabric, right sides facing, with straight edges aligned. Stitch trim to fabric along straight bottom edge with a 1/4-inch seam allowance.
Trim sides of eyelet and fabric, and top of fabric, to make scalloped edges.
Iron seam open, then fold piece so wrong sides of eyelet and fabric are facing and top edge of eyelet meets top edge of fabric, hiding the seam.
Iron to crease fabric at the fold (you are creating a 7/8-inch fabric border at the bottom of the eyelet).
Place double-sided tape around bottom edge of favor box.
Align fold of fabric with bottom edge of box, and wrap it around, pressing with your fingers to secure.
Gather top of wrapping, and tie with ribbon; slip on hole-punched card-stock tag (to make eyelet-like edge, see instructions for seating cards), and tie a one-sided bow.
3-by-3-by-2-inch favor box
3-by-3/4-inch card-stock tags
14-inch-long narrow grosgrain ribbon
6 1/4-inch-wide eyelet cotton fabric
Rotary cutter with scalloping blade, or scalloping shears
Gather eyelet around favor boxes to create elegant pouches for guests. For a tailored look, we sewed wide eyelet trim to cotton fabric, then wrote "thank you"; trim edges with scalloping shears and a mini hole punch.