Step #1
Draw an oval.
Step #2
Draw outline for body & handle.
Step #3
Draw an oval.
Step #4
Draw outline for mug as shown.
Step #5
Draw handle.
Step #6
Draw two rectangles for design of the mug & circular line inside the mug as shown.
Step #7
Draw hill like shape & horizontal line as shown.
Step #8
Make necessary improvements to finish.