Pictures courtesy Bonnie Evans
Pattern:
Cast on 5 stitches, knit around. Place a marker to mark the beginning
of the round.
Next round, make 1 stitch in each stitch (10 stitches).
Round 5: *k1, yo* around to marker. (20 stitches).
Round 6: knit
Round 7: *k2, yo* around to marker.
Round 8: knit
Round 9: *k3, yo* around to marker.
Round 10: knit
Continue this pattern of adding a stitch in each section- there are 10 sections, 10 more stitches. When needed, switch from using the double points to a circular needle.
When the blanket has reached the desired diameter, cast/bind off. Now your blanket is complete, unless you want to embellish it with an edging.
Now for your edging: You can add fringes or tassels or even pom-poms. Or, for those handy with a crochet hook, you can crochet a bit of a lace edge around. (I knit my first one with Lion Brand Jiffy yarn- it's a bit "fluffy"- and crocheted an edging of mercerized cotton, for a more finished look.) You can also knit in stripes, and on the even rows, throw in some purl stitches for a bit of texture. It also works well with a variegated yarn.