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My experience has been that kitchen towels that do NOT have little loops like bath towels are best. I prefer all cotton; plain weave or twill weave are good. The waffle weave is good, but shrinks like mad when you wash them. When you wash the towels, try not to use fabric softener because that keeps the towels from absorbing as well. Buy a lot of them, because you can use them to dry hands, dry dishes, keep your tortillas warm and soft after you have heated them up, dry green beans after blanching but before saucing, wipe up spills, wring out shredded potatoes before making latkes, wrap around your tea pot to keep your tea warm, etc.! The more you wash them, the softer they get and they do not leave lint on your glasses like terry cloth does.
Just my opinion and experience...The best kitchen towels are the basketweave striped ones from William-Sonoma. I have like 30 of them, seriously. They're large, sturdy (100% cotton) and longlasting. And a great value, I always got mine on clearance because they were such a bargain at $8 for a packet of 4. Normally, they run about $20 for 4. Not cheap, but they last almost forever.
Do not get the ones with the WS logo. These totally suck because they shrink and become mishapened. After washing, they don't flatten out again. And I refuse to iron kitchen towels. If you're going to spend $4-$6 per towel, it should last and behave itself :)
I also like the cheap cotton kitchen towels from IKEA. They currently cost about $0.69 per towel. They're not as thick as the WS towels, but they soft, durable, and easy to clean. They also do not shrink much if at all.
Trader Joe's makes a Sham Wow type of dish towel that, although less visually appealing, holds up well and soaks up messes very well! I use these in place of paper towels and this helps my dish towels last longer too. Works well for drying any surface or dishes.
My favorites are a flat weave that say 'now designs' on the tag. Mostly my favorite because they are HUGE! 20x30 inches, easily. They might be more of a 'hand towel' than a 'dish towel' but I use them interchangeably.
I like the flour sack ones from sur la tabl they usually have some on sale as the seasons change and colors rotate.
I love my Martha Stewart brand flour sack towels. I paid $10 for 4, and own 12 now. I use then for everything, but love them most for straining yogurt or ricotta.
Loooove the ikea towels!