this is how I bind ALL quilts!
you can SEE it better here...she has taught us this for years!
http://www.youtube.com/watch?v=Ot7Trk6J2Vw
I went back and saw that on the mug rug she used a single fabric, but the same technique...single is actually just fine for a mug rug as it will not get much wear...you can actually just do a FAUX binding on the mug rugs though...
that is making your back larger than the front and just folding it over the front and then top stitching it down.