This is what I ended up making for this year's Talent Auction. In August. I actually made four of these sets, two for upcoming 2nd birthdays and two for the auction. I did the sewing for two of them yesterday, and it took about 4 hours. So two hours each, plus the crocheting. Each set includes a lunch sack, ingredients for a lunchmeat sandwich or PBJ, a banana, an Oreo, and a chocolate chip cookie.
I got the instructions for the lunch sack from Skip to My Lou. However, she doesn't give dimensions, or instructions for sewing the extra seams on each corner, which Rachel and I decided were necessary for structure and cuteness. I used 10x12 rectangles of felt, and cut off 1 1/2" squares on the bottom. I embroidered the LUNCH on one side, freehand using my trusty darning foot. The one in the picture is crooked. The other ones are straight because I sewed along a piece of tape, but the tape fuzzied the felt a bit when I removed it. Still trying to find a good solution.
To sew the corner seams, I pinched each corner down and flattened it one at a time (see picture). Then I pinned it and sewed as close as I could along the corner. Normally I don't condone things like pinning, but if you don't pin it, your seam won't be straight and your bag will be ugly. I'm just saying.