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Cut the pant leg just above the knee, it does not have to be even
Put the mid-length pants on and draw a dotted line where you want to cut them
Cut the shorts a little below the dotted line
Try the shorts on again to make sure that they are at the right length. Cut them shorter if necessary
Fold the shorts to make sure that both pant legs are the same length. Cut them if you need to make them even
Distress the shorts by pulling out some fringe at the edge or undoing a few seams in the pockets
If they are too tight around the legs, cut a notch on the side
Customize the shorts with patches, buttons, beads, etc. using the glue or any other materials to put them on
Wash the shorts in order to bring out more fringe on the edges