After cutting the milk carton down to the desired height I then covered it with batting. Then I sewed a fabric "box" out of a fabric scrap and put it over top the carton. For the handle I used a plastic band thing that came around my flower boxes when they were delivered. I sewed ribbon on both sides of it. Then I hot glued everything together. I didn't line it yet but I think it would look better if I did. Also like that it is a bit plain.
A ribbon dresses it up a little and it would also look cute with a little flower attached to the side. I see lots of possibilities for creativity.