My tea cosy is finished! It is just a little bit short - you can see the bottom half inch of the tea pot in the picture above.
My jumping off point was the tea cosy pattern in the One Skein Wonder book, and I mostly followed the pattern, but I thought the moss stitch they call for for the sides was boring. I wanted a breakfast theme, since I'll be using it mostly at breakfast time, so I looked in my stitch dictionary and chose waffle stitch for one side and leaves for the other. There was a shortage of breakfast-named patterns, so I decided that the leaves are tea leaves, which is fitting.
I'm happy with the result. I still have almost two full skeins of this red yarn left over. I'm not sure what I'll do with them. I guess for now they go back into the knitting bin in my closet.