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What a cute way to give a present! Looks like this person put a knitted ear warmer headband around a box, which is not only an awesome gift, but makes the box look pretty and saves on wrapping it! You could definitely do this with my bow head pattern, if you try it out please share!
source: http://weheartit.com/entry/19930479/via/robotyreczne
Wow, definitely trying that next year!