IKEA, I stumbled into their fabulous fabric selection and couldn't help myself with this one. It just reminded me so much of the kitchen.
I bought a yard of it, prewashed it of course, and cut it into 12 pieces. I measured one of the cloth napkins we regularly use against the size it would be and concluded it would be big enough.
Then I hemmed all four sides on each piece, and added a woven label to each. For the corners, I folded them over the other side instead of mitering.
If you are an avid reader of my blog, you will notice this same technique used for burp cloths (in flannel) and baby blankets (in fleece, flannel, or cotton). It is only the size of the material that differs. Yeah, and other posts on dish towels and cloth napkins.