Place glue on one side of the CD and center it on the wrong side one square of felt. Place the second piece of felt right side out on top of the CD. Pin each of the four corners to hold it in place. Cut all around the CD leaving the fabric stick out about 1/4".
Place the loose piece of fabric wrong side down on the CD and place a few dots of glue between the fabric piece and the CD to hold it in place. Thread three strands of the embroidery floss in the needle and tie a knot in one end.
Make a blanket stitch all the way around the outside edge of the fabric, CD, fabric sandwich. Tie off and clip the threads.
With your threaded needle find the hole in the center of the CD and make one stitch down, up, back down and back up again. Tie the two ends of the thread in a knot and clip the threads leaving short tails.
This coaster can be personalized with a permanent marker by writing the name of the person on it. You can also draw designs or add buttons.
Option: You can cut plastic butter tub lids in a 5" circle instead of using the CD or plastic canvas.