You can see in this photo that I have sewn the strip with the stiches landing on the center line with a 1/4 inch below the line.
8) Sew the second long strip on the other side of the line so that when the towel is folded along the line the two strips loose sides line up.
long strips attached to center
9) Match the center line of the hand towel with the center of the bath towel and sew the two pieces together long the bottom edge of the hand towel and top edge of the bath towel. Leave the 2 inch marked line at the top and ensure that the long strips stay loose.
10) Fold the hand towel along the center line and put the two short strips in the middle with 1/4 inch below the marked line
11) Sew along the line ensuring all 4 layers are attached, this will create your hood
If you don't want a shredded edge:
You do not need the extra strips so you could easily make two hooded towels with one hand towel and two matching bath sheets.
Fold the hand towel in 1/2 lengthwise.
Sew a 1/4 inch seam along the raw short edge of the hand towel, turn it so the seam will be inside the hood.
Attach the finished edge of your hand towel to long side of the bath towel ensuring the centers line up.
Voila regular hooded towel.
I curved the edge of the hood for a cleaner look, here you can see it all attached.
12) Shred the edge of the long and short strip by making cuts every 1/2 down the the seam.
Making the 1/2 inch cuts.
13) Wash and tumble dry to let the hood fray.
Voila! Isabel modelling the purple towel :D
I hope my instructions make sense. Feel free to send me any questions. If you are feeling extra creative you could even add eyes and ears :D