This is really an almost "patternless" pattern because it is so versatile. You can change the yarn & needles and make it any way you want. I made one quick & easy with two strands of worsted weight yarn and # 13 needles but you could use any yarn and needles, just change the number of stitches on rows 2 and 7 to make a larger or smaller bag. I adapted this from a dishcloth pattern. You may recognize it :) I will give the stitch numbers I used.
Cast on 4 .
Row 1: Knit 2, increase by yarn over, knit to end
Row 2: repeat row 1 until you have 26 stitches on needle
Row 3: knit 1, knit 2 together, yarn over , knit 2 together, knit to end of row
Row 4: repeat row 3 until you have 4 stitches on needle
Row 5 (handle) : knit across all stitches until handle is desired length- mine was 20 inches for a shoulder length strap
Row 6: Knit 2, increase by yarn over, knit to end
Row 7: repeat row 6 until you have 26 stitches on needle
Row 8: knit 1, knit 2 together, yarn over , knit 2 together, knit to end of row
Row 9: repeat row 3 until you have 4 stitches on needle
With right sides of bag together, making sure not to twist handle, sew together with a blunt yarn needle. I sewed up the bottom sides of the diamond shape and halfway up the top sides to make a little opening for my daughter's hands.
Here are some pictures I took in the process of making a mini bag for an American Girl (using size 10 needles and 16 stitches on rows 2 and 7). You can make these any size by changing the needles or number of stitches on rows 2 and 7. You could also do a seed stitch or alternate knit and purl rows for a different look. This would be great felted too!