Estimate a yarn tail length that is three times the length of what the cast-on edge will be.
Make a slip knot this distance from the yarn end and place it on the right-hand needle.
*Position thumb and index finger between the two strands of yarn. Close the other fingers into the palm of your hand and securely hold the yarn.
Moving in an upward direction, insert the needle under the yarn on the thumb and into the loop that's formed around the thumb. Take the needle over the top of the yarn in front of the index finger and guide it down into the thumb loop -- the strand of yarn from the index finger easily moves along with the needle. Pull the strand through the thumb loop, making a new loop on the right-hand needle.
Drop the yarn around the thumb, and spread your index finger and thumb to tighten the loop on the needle-one cast-on stitch is made. Repeat from * to make a second cast-on stitch, and so on.
Insert the right needle between those 2 stitches. Knit a stitch and transfer it to left needle. Repeat this step for each additional stitch.
Make One (M1) -- version A increased stitch slants to the right
Insert the tip of the left needle from back to front under the strand that lies between the next stitch on the left needle and the last stitch worked on the right needle. See the illustration at right.
Referring to the illustration at the right, insert the right needle from left to right into the front loop of the lifted strand, and knit it from this position.
Make One (M1) -- version B increased stitch slants to the left
Insert the tip of the left needle from front to back under the strand that lies between the first stitch on the left needle and the last stitch worked on the right needle. See the illustration at right.
Referring to the illustration at the right, knit the strand on the left needle, inserting the needle from right to left into the back loop.
Slip, Slip, Knit (ssk) -- decreased stitch slants to the left
As if to knit, slip the first two stitches from the left needle one at a time to the right needle as shown at right.
Insert the left needle into these two stitches from back to front as shown at far right, and knit them together from this position.
Knit Two Together (k2tog) -- decreased stitch slants to the right
Working from left to right at the point of the decrease, insert the tip of the right needle into the second and then the first stitch on the left needle; knit the two stitches together.
Purl Two Together (p2tog) -- decreased stitch slants to the right
Working from left to right at the point of the decrease, insert the tip of the right needle into the first two stitches on the left needle and purl the two stitches together.
Wind yarn around a piece of cardboard or the palm of your hand loosely 100 times. Tie a 10-inch strand tightly around all the loops. Cut the yarn bundle opposite the tied end. Leaving the tails free, trim the pom-pom so that it is rounded and measures 1 to 2 inches in diameter. Tie onto piece with tails; trim tails.
Hold wrong sides together with the needles pointed to the right. Thread the yarn tail into a yarn needle. *Insert the yarn needle knitwise through the first stitch on the front needle and let the stitch drop from the needle.
Insert the yarn needle into the second stitch on the front needle purlwise and pull the yarn through, leaving the stitch on the needle.
Insert the yarn needle into the first stitch on the back needle purlwise and let it drop from the needle. Insert the yarn needle knitwise through the second stitch on the back needle and pull the yarn through, leaving the stitch on the needle. Repeat from * across until all stitches have been joined. Adjust the tension as necessary. Weave in loose ends.
Insert the hook into the second chain so that two strands are over the top of the hook and one strand is under the hook.
Wrap the yarn over the hook; then pull a loop through the chain. (There should be two loops on the hook.)
With RS together, hold in one hand two needles with an equal number of stitches on each and with points in the same direction.
*Knit together the next stitch from each needle, pass the first stitch worked over the second stitch to bind off; repeat from * across to bind off all stitches.