For this I cut the plastic bags in a continuous strip, making it thinner and used a G hook and it was much easier to work with. I like the plarn coaster as my cups don't stick to it like it does with cotton yarn.Now, if I were wanting to make another basket or a bag I would probably use the loop method for cutting the bag as I did in the basket simply because it makes for a sturdier product.
I made two round coasters but didn't take any pictures of them.
Blast!