From the Knit Picks Website:
Great knits for your co-worker, mail carrier, or as a hostess gift for the holidays. This coffee cozy is simple and quick to make, give along with a gift card to your local coffee shop.

Knit Picks pdf modified December 15, 2009

Sizes after felting:
Mug Warmer 3.25” high x 3.5” diameter
Coaster 3.25” Square

Knit Picks Telemark discontinued
(100% Peruvian Wool, 103 yards/50 grams)
For 4 coasters and one cuff:
Cobalt 23930 (MC), 1 ball
Drift 23935 (CC), 1 ball
Knit Picks Wool of the Andes Sport may be substituted.

Needles
Size 4 (3.5 mm): 24” circular for coasters
Size 4 (3.5 mm): DPN or two 24” circulars for cuff
Adjust needle size if necessary to obtain correct gauge.

Colorwork charts are provided.

From the pattern:
These felted projects are designed for streamlined knitting and felting for holiday decorating and gift giving. Several repeats of the coaster design are knitted in the round so that you can make several at a time. After you cast-off the round, felt the whole thing, and then you can easily cut each coaster. A second round of felting finishes off the cut edges.
The coffee cup cuffs are knit in the round one at a time on
DPNs, but if you use two circular needles, you can knit two at
the same time.