The outside of the bag is now knit and pinned out. It is pulling to one side, though, as did the larger bag. The bottom row is nicely straight so I think the last/top row needs to be cast off very loosely to match the relaxed edge of the beginning of the bag.
This piece measures approximately 11 ¼” wide and 5 ½” tall. The next step is to line it with silk, sew up the side seam and make the drawstrings and tassels.