Someone else asked this and here are some ideas I replied.
My aunt who is 92 years old, makes those posted on the allfreecrafts.com site. She made me one for scissors and I love it! She also makes some to fit on the handles of cast iron skillets that are for sure a favorite of our family. Anyway it's basically a pot holder folded kinda like a burrito, hand stitched down the center seam and bottom. These are the greatest gifts for sure...since she made them..not to mention how hot cast iron gets. Every time I make cornbread..always in my cast iron skillet, as soon as it comes out of the oven, the pot holder handle cover goes on. I've always been afraid someone will walk by and grab the handle and get a brand :-)

Recently my brother and his wife ordered me a cast iron skillet that is square with a extra side handle. In the box was a handle holder made from a pot holder, but was not near as nice and thick as the ones my aunt makes. Now to figure out how to make something for that little side handle.
Here's a link and photo of my new skillet to give y'all an idea of the side handle. I think in accessories there may be a picture of the handle pot holder. I love the skillet, but the side handle scares me!
HTH

https://secure.lodgemfg.com/storefront/product1.asp?menu=logic&idProduct=3937