I downsized the main piece of fabric to 4X7 inches and ended up with a 2 and1/4 cup (height). I folded down 1/2 inch at the top rim and about 1and 1/4 on the bottom that you gather. For the saucer I sewed the circles at 4and 1/2 inches and instead of leaving an opening like the pattern suggested, I cut a slit in the center of the circle that the cup will cover. The diameter of my cup ended up with about a 2 inch circle for the coffee. I sewed two 2inch circles right sides tog. and cut a slit in the center of the bottom one for turning.
Instead of regular quilt batt, I used my Hobbs fusible cut at 2and 1/4 for the cup and I sewed the saucer circles on top of another square of the batt. I think fusible fleece would work even better for keeping the cup sides crisp. I think I shortened my handle to 3 and 1/2 inches? The trickiest part of the project was hand sewing the cup to the saucer and the coffee inside the cup. It is probably easier on the full size cup?