Do you knit? If so, I recommend my coffee cup cozy. It fits over paper coffee cups (Tim Horton's, Starbuck's, etc) and only takes about 20-30 minutes per cozy. For a hand-knit item, that's not bad at all.
I recommend Red Heart Super Saver yarn for this. It's knit with two strands held together. It's not only cheap, but it goes through the washer and dryer on medium or cool and comes out looking new. It comes in a ton of colors, too. This pattern doesn't use much yarn. How much yarn can you use on a project that is only 24 stitches wide and 18 rows long and only takes 20 minutes?
Using 6mm needles and two strands held together of weight group 4 (a.k.a. worsted weight, medium, 4-ply) yarn, cast on 24 stitches.
rows 1-5: garter stitch -- knit all stitches on all rows
rows 6-13: k1p1 ribbing (count before starting ribbing to make sure you still have exactly 24 stitches)
row 14: k11, k2tog, knit to end of row
row 15: k6, k2tog, k6, k2tog, knit to end of row
row 16: k9, k2tog, knit to end of row
Sew side seam, weave in ends. Done!
Come to think of it, if you don't knit, you could even get some Polar Fleece fabric and sew up coffee cup cozies instead. Get a cardboard cup sleeve to trace, and you're in. You'r probably want to use a double layer of fleece.