I found the pattern in the Stitch & Bitch book. They are fun to make. The base is made out of worsted weight yarn and fun fur knitted together. The edges are made out of the same (on this one). The second one had yarn similiar to fancy fur (the fun fur with little tufts) around the edges.
Is that washable?! My Maggie is in need of a new doggie bed. I bought her one at Christmas and she HATES it. She refuses to use it. So she is still in her ugly bed. Your little Princess is so peaceful looking that it makes me want to knit Maggie a bed…