First, I headed to Michaels. Luckily they were having 50% off on all baskets so I was able to get this one for only $6. I picked this because it has such a loose weave and pretty neutral colors.
I measured out the tulle. Folding it in half, I shoved it through the weave going from the inside of the basket to the outside. I then brought the excess over the top and threaded it down through the loop I just pulled through the basket. Originally I was measuring to make it as long as the basket but that became much too puffy so I cut it down a little shorter. Try cutting the tulle in diagonals to give it more of a jagged edge and make it more aesthetically appealing.
If I were to re-do I think I wouldn't do two colors (or else I would do a blue-blue-white pattern). I don't really need a liner on the inside as I'll be putting some Easter grass in there. Otherwise this was sooo easy and cheap I'm glad I didn't spend all that money at Pottery Barn!