Web search turned up these directions.

Sue

Here is a link that might be useful: Bath Towel wraps.

Grace the directions Sue found look pretty much like what I'm doing. I do sew ribbon down one end and put a bow on the ones for women. Here's a pic of one I did for a male cousin who's an Auburn Football fan.

I do the ones for men and little girls out of the standard bath towel that Wal-mart has for $1.50. The adult plus size ladies I do out of shower or bath sheet size. You'll have to adjust the elastic to fit the person you're doing it for. I've got two little girls ones made now that I'll take a pic of and post later. I am buying the bath sheet/shower towels at Bill's Dollar Store for $4.00 each. Most have been Martex or Charter Club Towels.
Susan

Thanks this sounds easy enough... How do you do your applique with a embroidery machine?? Mine never looks that good...
Grace

Grace,
Sorry I couldn't log in last week. No, I did my applique with my 42 year old singer. I reduce the upper tension to less than 1 and I set the zig zag at 3.5 and the length of the stitch is in the "narrow" section. It takes some practice.
Susan