It is knitting as a long rectangle and sewn up the sides before felting, and a super long icord. I actually remembered to measure it this time before fulling, and it went from 16" x 19" to 13" x 12" so yes shrinks a lot more length wise and width.
The embroidery was done by printing the image out on regular printing paper, and laying over the bag. I then embroidered the outline, using DMC Black Perle #5 and stem stitch. The paper is carfully torn away and using DMC embroidery floss, colour red (666) and blue (995)2 strands, I shadowed the outline with a stem stitch close by.
