I found two very similar embellished tea towel ideas on Pinterest (it really is my new Google for crafting and cooking). One used 2.5" squares (from Crazy Mom Quilts) and the other was more loosey-goosey with the sizing of the patchwork (from Film in the Fridge). I found some cotton tea towels at Ace Hardware and got to work on an afternoon when I had to stay at home with a sick kid.
Forgive my wrinkles...Everything got rolled up in the end and it seemed silly to iron it just for pictures.
I had some pre-made strips from a quilt that I made a number of years ago, so I also used that for a few of the towels.
Rolled up they aren't so wrinkly: