Well- I promised I would work on this, so here it is.
I used cotton yarn(Peaches and Cream), and 1 inch elastic (non-roll). I also opted for a variegated MC (main color) and used a solid black for my CC(contrast color).
In the process of working on this I also discover how to make a alternating color cable cast on, which is match on on the top with and alternating color cast off, both edges mirroring each other. I think it is pretty cool.
The main body of the knit is done in double knitting, which forms the casing for the elastic. The elastic band is knitted right in, so when you are done-your done!
Below I have uploaded instructions for this project, in which I have included instructions for the “alternate color cable cast on, and off. There is a swatch practice for you to use for establishing your gauge and practicing both the cast on, and cast off.
If you are not sure why you should make one or two of these “pan jackets” then check out this post
Happy knitting- KT
PS-Because of my discovery, I also can use this method to make straps for my purses. Having the casing open on both ends will allow me to insert a piece of ribbon into the strap, stabilizing the stretching, and…..I will have two pretty edges to boot. Yeah!!!!
Oh,just an observation-
I washed my jacket, squeezed it out, put it on my pan, blocked it out and let it dry. Then I observed that the cotton yarn holds the moisture quite a bit longer than wool, so I finally, tossed it in a low dryer. It didn’t hurt it a bit. I can’t wait to bake with it. I will let you know the results.
Creative Knitting - Beyond Knit and Purl 
Brilliant!