Cut fabric into 12" X 12" squares. 2/3 yard will yield 6 napkins.
Cut a 1" strip of card stock or a file folder using your C-thru ruler.
Using your 1" strip as a guide, iron down edge of napkin.
Keeping end folded, fold over next edge using your guide.
Continue until all 4 sides are folded.
Now open out folds.
Fold each hem in half so that the edge of the fabric meets the previous fold. Iron, trying not to flatten earlier crease.
Continue on all 4 sides as before.
With only 1/2" edges folded, refold as shown.
Using your C-thru ruler align the ruler so that one of the lines is on the top fold and the right edge is hitting the 1" crease line (or edge of fabric) as shown. With an erasable marking pen, draw a line down the right edge of the ruler. This makes a line that is at a right angle from the top fold.
Do the opposite on the left side. Refold napkin and repeat with the other 2 corners.
Stitch on line. Trim seams to 1/4" as shown.
Once you get the hang of how these are sewn, you can probably skip the marking pen step. You can also sew in a chain once you get the rhythm.
To add a personal touch to your gift you can make your own labels. Please make yours with some clip art and color. See easy tutorial: Created by YOU Labels.
I cut my labels. Then I trimmed my labels so that 2 sides were cut close to the print and the other 2 sides were long enough to be stitched in the hem corner.
Now you are ready for the topstitching. You may want to pick a contrasting color. I chose a gold to match the gold in the napkins.
Refold hems of napkins so that the seams are tucked in to make mitered corners. Iron flat. Now iron on label just under one corner. Stitch close to fold all the way around napkin.
Iron napkin in half then in half again.
Stack the set of 6 napkins together. Add a ribbon and you are ready to take to the party.