This is the chinese lantern bag - the pattern I picked up at Stitches West from Rumplestiltsken, a LYS in Sacramento. It's a series of short rows, a technique I had never tried before.
I learned how to execute a "loop" stitch, using alpaca/beaded sari silk yarn I found on EBay. What a nice purchase - I got the beaded yarn and they included handmade wooden needles. This was much nicer than the other recycled sari silk yarn that I have tried - it usually twisted up, had knots, breaks, twigs, dirt, would get down to a mere thread... Now I just have to finish up the seam and make a tassel and this bag will be done.