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The Wonderbag: How Cooking with Recycled Polystyrene Can Avert Disasters
I can't help but think that cotton and polystyrene are both very flammable and although the Wonderbag isn't used at the point of heating - I'm sure someone would try it.
If it could be fireproofed - it could be used whilst heating to reduce thermal loss, heating the pot up with less fuel.
https://www.youtube.com/watch?v=I1U2ILREJqk
http://en.wikipedia.org/wiki/Haybox
Great way to save energy!