I love this 'patchwork quilt' technique, it's a great way of using scraps. I've added a link to a Silhouette cutting file on the top right of the blog. The circles and squares are sized to decorate the Docrafts Basics kraft gift bag. I've used single sided paper for the bag, but it's even easier if you use double sided as I have in this quick demo.
You don't have to use the Silhouette file, any circle made with dies, scissors or punches will work.
Once you've cut as many circles as you need, score a square inside each circle, like so. Fold over the edges to make your squares. If you want to use single sided paper, just glue a square of patterned paper to the wrong side of the circle before folding over.
About the Silhoeutte File : For the bag I've made cut the circles (blue lines) and squares (green lines) in 6 different Papermania 12x12 papers. If you're using single sided papers, you can ignore the red squares. You can choose which colours to cut in Cut settings>advanced. Stick the squares to the wrong sides of the circles, score and fold.
If you're using double sided paper, you can cut the circles (blue) and draw the score lines (red). Ignore the green squares.
If you wish to sew the squares, stick the finished squares to a piece of cheap kids funky foam cut to size. Sew across the middle of each row and each column of squares. Stick the loose threads to the back of the foam with tape, and stick to the bag.
Finish with a few matching embellishments, add a gift tag and you're done!