This is an antique Japanese military sake cup, decorated with two soldiers under fire (those little puffs) holding a regimental color - the little blue rim as the flag itself was a gift from the emperor so they kept it through the years, even though some regiments had a flag that was completely tattered. The words are "Shanghai Victorious Return Commemoration". The kiln's name Kutani is on the bottom.

Condition: There's a very minor hairline around 1 o'clock above the word "Shanghai" - you can faintly see it in the side photo.

Size: 2" across