First decide on how big you want your pads. I just used a three finger width for mine.
Cut a strip from the blanket to your desired width.
Fold the strip into thirds. I made some in half, thirds, and fourths but I like the thirds best.
Cut the strip into squares. Each square will be made up of three pieces of fabric. Then cut each square into a circle by curving the corners. Cutting into a circle is not required but it makes sewing them together much easier.
Here is a picture of the blanket, the cut squares, and some cut circles.
Cut off the excess thread and they are ready to use. To wash just throw them in with you regular clothes. If you are using them to remove something you fear might stain clothes be sure to wash them separately.
This is a really simple project and I am quite happy with the results. I will be making lots more for all of my cotton ball/cosmetic pad needs.