# the pot he was making from the clay was ruined in the potter's hand

"the pot that the potter was making with his hands was not good". Something about the pot made the potter unhappy.

# was making

"was forming" or "was shaping"

# he returned the clay and formed it into another pot

He crushed the clay back into a lump, and then used that lump of clay to make another pot.

# that was pleasing in his eyes

"that he thought was good"