I went a little dish towel crazy and made several different types of embellished dish towels to give as gifts with my little owl potholders. My favorite was the Yo Yo dish towel.
These were quick and easy to do and turned out unique. Start by cutting a strip of fabric a little longer than the end of the dish towel. Iron it smooth and then fold in the edges, ironing those flat.
At this point I used a strip of Heat N Bond and stuck the strip to the towel so that I didn't have to pin it. Pinning it is an option and would be the cheaper, more accurate, less lazy way to go.
Sew around the edges. Remember to use your bobbin thread as the same color as your towel and your top thread something that would match well with your fabric.
Looks nice but we're not done. Let's make a yo-yo!
Cut a circle of fabric that is double the size that you want your yo-yo to be.
Pull out a needle and thread and, using your fingers to fold in about 1/4 of an inch (don't get too stressed about this. . . eyeball it. It doesn't have to be even). Sew with big stitches all the way around.
Here's another photograph on a lighter piece of fabric. You can see the stitching better here.
Once all the way around, pull both ends of the thread to make the circle pucker. Tie it off.
Flatten the circle and you have a yo-yo!
Decide where you want it and attach it! I decided I wanted the yo-yo dead center when I folded my dish towel in half so it is 1/4th of the way over when the dishtowel is opened. I attached it to my dish towel by stitching around. The red and black one is stitched close to the edge and the other two are stitched more in the middle. I am not sure which one I prefer!
If I Do It Again:
1. I would match my thread just a tad better. On the grey polka dot yo-yo you can see the thread attaching it to the towel. The other two match much better.