I use cut down method also. Actually very ingenious and not much waste if done properly. I make lots of Pot Holders. I sew 4 pieces together as Rhonda has shown. I like to use far quarters, cut in half. I cut out the 9 inch square I need for the potholder then have all of these corner pieces left over. I reverse and sew all the corners together. Cut out another square and continue this until I have used all the fabric with the exception of jagged strips. Straighten the jagged strips with your rotary cutter. If those little jagged edges are big enough, make another pot holder from them. Lots of tops for Pot Holder and most squares can be used as a pair.
Happy cutting everyone and Thanks Rhonda for your reminder.