Look on here for a thread titled, "Isn't this cute" - one of the members here posted a little dress made from kitchen towels and matching fabric. They hang on your oven or dishwasher handle.
Here's a link:
http://www.quiltingboard.com/t-80619-1.htm
I made this sketch for another board a few years ago - it shows one way to make a potholder and matching towel into a hang-towel. I like this one for the vertical door handle on the fridge.
Towel topper sketch
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