Knitted Pencil Case (Ysl Yarn)

I got this amazing yarn from my aunt, she will be moving to a smaller home and won't have room to stock it so she gave me these two incredibly large boxes full of all kinds of yarn, - imagine my luck! ^__^

About this project; a friend of mine decided we should explore eachothers hobbies. and we both agreed we should make a pencil case by using both hers and my hobby; sewing and knitting.

She's incredibly talented at sewing (she has shown me many times by wearing her incredibly pretty self made garments) I have taught her to knit and eventually she will teach me to sew. I'm so curious what hers will look like.