Using the Moda Bake Shop tutorial as a guide, this is my finished project!
I cut four 5 inch strips (two pink, two yellow) and sewed them together, then cut them crosswise at 3.5 inches and made it into a checkerboard pattern.
To make the drawstring, I cut two strips of fabric 2.5 inches wide and sewed it on like one would sew on a binding, but instead of hand stitching the back, I just ran a cord through the loop in the "binding" and tied it in a bow where the start and end of the binding over lapped.
It is ever so slightly large (you really have to gather it quite a bit to get it snug) so I might trim it down a little bit. But it ended up very cute!
Hooray for completely finished projects!