This little guy was featured in the Fall 2013 issued of Crafts 'n Things--now Craft Ideas--magazine. (That's him up there on the cover.) Instead of giving you the directions here, I'm sharing the link to the project page on the Craft Ideas website: Owl Treat Bag. You can print the directions right from the page, which also has a link to printable patterns.
Here are some additional photos to help you understand how the owl is constructed:
|Inside view and handle|