Step 1: Take a number #10 envelope, seal it closed and then cut it in half - across the short side. To look like this:
Now you will cut off the two corners on the cut end. I measured in one inch in each direction from the corner as shown.
Step 2: You will want the back of the envelope to be the solid paper, so make the side of the envelopes with the seams the front. So put that side face up and fold the top (where you cut off the corners) down one inch. I used my ruler to give me a straight fold.
Step 3: You will cut a piece of patterned paper or cardstock to fit your envelope below the fold. I cut mine 3 3/4" x 4 1/4" so that I could adhere it to the envelope and then trim the excess. If you choose to do it this way, take care not to cut your envelope. Once you have taped that in place, cut two strips of a coordinating paper 1" x 4 1/4". Adhere one strip to the folded flap, trim at the edges and glue the flap down. The other strip will be adhered to the top (unfolded) section and trimmed.
Your envelope should now look like this.
Step 4: You will cut a piece of matching cardstock 4"x 4 5/8". Once again, measure in one inch from the top corners in each direction and cut the corner off. If you slide your cardstock into your envelope, you should have a nice even border of the envelope showing around your cardstock. Now you can decorate both the envelope and your cardstock insert as you wish.
For anyone who has Cricut DS, here is a cut file that will cut your envelope, cardstock insert, a scallop border and straight border.
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