Thank you for all the nice comments. This is one project for which I have no process shots, but it is very easy to make as long as you don't get ahead of your self.
Hi Dave, I'm no carver I like machine work!!!
 I'll try to explain it in words with out pictures.
1) Start with a solid block that is about 1/2" taller than the cup ( room for a tenon on the bottom) Grain in the vertical direction
2) Make the width one way about 1/4" wider than the finished size of the cup
3) make the other directions about 2" wider than the cup ( this is the handle side)
4) layout the shape of the cup and the handle on the end and rough cut it out on the band saw- leaving the handle    about 1/4" wider than finished size and material for a generous radius where the handle meets the cup( you cut and sand that in on the spindle sander later).
5) Laying it on its side, cut away the top and bottom of the handle area so it is about 3/8" off the top and 5/8" off the bottom. Then you will not be hitting the handle area when turning the outside rings of the cup for the final cutting later.
6) Mount the blank in the lathe, turn a tenon on the bottom  and an area about 5/8" from the bottom to the finish outside diameter of the cup. Then put it ins a chuck on that tenon.
7) Turn the tops outside of the cup to the finished diameter to the same dimension you turned on the bottom- go about 1/4" down. then fore the inside to the finished size and finish sand the inside
8) Mount the cup on a jam chuck and turn off the spigot and finish the bottom.
9) Band saw the excess material off around the cup closes to those finished diameters you had established and then sand it all the way around to blend them in. NOTE: Be sure they bandsaw blade and belt sander are truly at 90 degrees or you will get a taper on the outside of the cup.
10) Lay the handle area on its side and cut a handle to fit what ever shape you want and make the holes big enough so your fingers slide in and out easily. I put the holes in first and completed the contour of the handle shape last- Now lots of sanding!!................................Just like that!

Cheers, Good night...................Jim

Cheers, Jim ........................ Variety is the spice of life...............Learn something new every day