You need to make some clips on the corners almost to the stitching,but make sure you don't clip your stitches of the potholders.This helps the bias go around them easier so they lay nice and flat with no wrikles etc.HTH
Kathi

Sitcheasy,

Here's a link to the Wright's web site with instructions (and photos -- I love photos) of several different ways to apply double-fold bias tape.

Just for good measure, here's another instruction page showing the two-step method:

http://sewing.about.com/library/sewnews/qa/aaqa0204c.htm

HTH,
CMC

Here is a link that might be useful: Applying double-fold bias tape