Felted Kitty Bed

I came across this website http://wendyknits.net/knit/kittybed.htm a while back and last night decided to figure out how to make the kitty bed on my bulky machine. This is what my first attempt turned out like.It's too big and poofy, but my technique idea is sound and will work which makes me very happy. Xena is intersted already and it's still wet.

It's sitting on a small 1 bushel ($1 store) laundry basket. I'm going to wash it a couple of more times. I used some old spun in the grease homespun I bought years ago (really pretty icky) and it's taking a bit to felt it up. This is after 2 full wash cycles in the washing machine. The pink furry stuff is Boa eyelash yarn.

Now, what I did was, I cast on 40 stitches, the next attempt will be using 30 stitches and I used the round baby blanket technique. After grafting it together, I cast on 10 stitches and used the SAYG method to connect the round section as I knit the side band. I skipped every other bar to close it up, but it made it a tad too gathered and poofy so I think the next one will be done in a alternate method of like: pick up every bar but skip the third bar. I'm hoping that will make it more of a straight up side than a gathered kind of almost beret looking pouch. Say! That might not be a bad tote bag/purse! Hmmm.... the gears are smoking now LOL!!!