I have made hot pads. Here is one made the same way I make them.
They are thick and useful - I usually make them a bit bigger than this
one (chain about 45) but any size that you like is fine. I saw one
website where someone was saying that little ones are handy around the
microwave.
String bags are another option. This website has a pattern for members
(membership is free) and I suspect there are free ones elsewhere as
well.
http://www.sugarncream.com/pattern.php?PID=133