I recently found this link to a tutorial on making mug rugs using the QAYG (quilt-as-you-go) method.
Here is the result of me playing with some strips of scraps: Two good-looking mug rugs of approximately 6" x 8". They are made to fit into a standard size envelope.
A nice, little project, and I think I would use this technique more. It is also good to know that I only used scraps (plus a little bit of thread...)
Keep on sewing and quilting!