What the heck am I going to do with this?

Once upon a time I knit this, sort of copying a medieval floor tile from a Dover book. It was going to be a sort of pouch pocket on the front of a tabard-like poncho-sorta-thing. Lucky I never actually made it!

But this, now, is a fine piece of knitting, and devilish to rip out. A bit too tall to be half a tea cosy for my little pot. A bit funny to be the front of a hat.

I had originally 2 balls of the yarn, one of each colour. Most of the brown is made into plain swatches. It's Classic Elite, I think this stuff. I wonder if it would felt?