1/2 gallon plastic milk jug
Thin wood scraps

Glue gun
Heavy duty scissors

1. Cut milk jug to desired height. (Just make sure it's below the handle!)
2. Cut wood into strips of different heights and thicknesses.
3. Beginning at the top, cover the exterior of the jug with the pieces of wood, layering as you go.
4. Glue some smaller pieces of wood along the inside rim of the jug to give it a more finished look.

If your caddy seems too large, put a cup or mug inside to keep your silverware together.