Abstract: An insulating disposable vessel for holding a liquid and method of making it. The vessel is made up of a paper cup and a laminated wrap. The cup has a sidewall and a bottom wall. The laminated wrap has opposed marginal side edges and is wrapped about the sidewall with the marginal edges overlapping each other in an overlapped joint. The laminated wrap is formed from a strip having an outer layer formed of paper, and an inner layer formed of embossed paper towel material. The strip is wrapped around the sidewall with the inner layer interposed between the sidewall and the outer layer resulting in a plurality of thermally insulating air pockets providing thermal insulation for the cup.