I used the bit of yarn I had leftover from the Short-Row Hat to make this nifty little tissue holder (pattern available here, from Karrie). Adorable little sewn tissue holders have taken blogland by storm this past year...but kudos to Karrie for thinking to knit one. It's such a great project for those shorter bits of yarn remaining after completing a more time-consuming project. And really, you can pretty much knit up a swatch of anything - as simple or complex as you want - and just seam up the sides to magically turn a bit of knitting into something wonderful and gift-worthy.
I love the stitch in the pattern - it's very simple, but has a very effective presentation and texture. I think a scarf made from this stitch pattern would turn out lovely, and could be a nice larger project for a beginner. I was lazy and didn't add a button for closure, or any other embellishment, for that matter, but you could definitely dress this baby up with some notions. If you're not a lazy-butt, that is.