I have made this type of quilt before. The only thing I do that is different than the one showned on the web site posted by XYZquilts is I cut all the circles both from the blue jeans and colores of choice. I then sew one blue jean and on color together right side to right side leaving an opening to turn insideout. Close up the opening, then take one circle and place on top of second stitching across the line your drawn from the sq. template. (The sq. withing the circle.) Spread apart the two circles and at the sewen edge you have the first flap on each side. Continue to do this will all circles. To finish you can hand sew the flaps down or machine stitch, only difference from the other way is that the flaps are lined and satin stitching is not necessary.
Gee, hope I explained this clearly enough.