It's the slip-stitch warshrag from the MDK book!
I used a light blue and an off white 100% cotton worsted-weight from Sugar n'Cream. The pattern doesn't belong to me so I'm not reprinting it here. It was really fun and easy to knit up. The only problem I have is with the right edge, it just doesn't look smooth and "finished" to me. But I'm not really sure what to do about that.
I've heard other people have problems knitting with cotton, but I was ok with that. My only issue was that it has a kind of strange texture to it. It almost feels like cloth that has had soap dry in it, kind of waxy I guess. But the finished product doesn't have that feel at all. I've since started the bathmat project from the book with Peaches and Cream and it doesn't have that weird feel to it. No idea what that's all about.
(cross-posted to the MDK Knit-a-long)