CO 68 stitches. Place 34 stitches on each of the two needles, and join to begin working in the round, being careful not to twist.
Round 1: [K2, p2] to end. Repeat this round until work measures 1.5 inches, increasing 1 st on each needle on the final round, to 70 sts total.
Next Round, establish pattern stitch: Work round 1 of pattern stitch chart. Pattern is worked 7 times in each round. Work round 2 of pattern stitch chart.
Work Rounds 3-22 of leg chart 3 times, and then rounds 3-12 once more. This will give a leg length of about 7.5 inches. Additional rounds can be worked for extra length, if desired. If you do this, make a note of the last chart round worked before starting the heel so you know where to pick up the pattern after working the heel.
To setup for the heel, rearrange the stitches: Work the first two stitches from the first needle, in pattern, onto the second needle; then slip the first two stitches of the second needle to the first. The second needle should start and end with [p, k tbl, p] and you should again have 35 stitches on each needle.
The first needle will be now referred to as the Heel Needle, and the second needle will be referred to as the Foot Needle.
This portion is worked flat, in rows.
On the Heel Needle:
Row 1 [RS]: [Slip 1, k1] to last 2 sts, k2tog. (34 sts)
Row 2 [WS]: Slip 1, p33. Row 3 [WS]: [Slip 1, k1] to end.
Repeat Rows 2 and 3 until you have a total of 32 rows, ending after a Row 2.
Row 1 [RS]: Sl 1, k19, ssk, k1. Turn work. Row 2 [WS]: Sl 1, p7, p2tog tbl, p1. Turn work. Row 3 [RS]: Sl 1, k8, ssk, k1. Turn work. Row 4 [WS]: Sl 1, p9, p2tog tbl, p1. Turn work. Row 5 [RS]: Sl 1, k10, ssk, k1. Turn work. Row 6 [WS]: Sl 1, p11, p2tog tbl, p1. Turn work. Row 7 [RS]: Sl 1, k10, ssk, k1. Turn work. Row 8 [WS]: Sl 1, p11, p2tog tbl, p1. Turn work. Row 9 [RS]: Sl 1, k12, ssk, k1. Turn work. Row 10 [WS]: Sl 1, p13, p2tog tbl, p1. Turn work. Row 11 [RS]: Sl 1, k14, ssk, k1. Turn work. Row 12 [WS]: Sl 1, p15, p2tog tbl, p1. Turn work. Row 13 [RS]: Sl 1, k16, ssk, k1. Turn work. Row 14 [WS]: Sl 1, p17, p2tog tbl, p1. Turn work. Row 13 [RS]: Sl 1, k18, ssk, k1. Turn work. Row 14 [WS]: Sl 1, p19, p2tog tbl. Turn work. 20 sts remain. Row 15 [RS]: Knit.
With Heel Needle pick up and knit 1 st for every 2 rows worked on the first gusset side (16 sts). Pick up and knit 1 st in the corner between the last picked up st and the first st on the Foot Needle (17 sts). Place marker to denote start of round. Continuing to use the Heel Needle, work across 13 sts in pattern from foot chart, Round 11 (or if, you lengthened the leg, start from wherever you left off). Now slip 10 of the 20 heel sts from the Heel Needle to the Foot Needle. Using the Foot Needle, work across remaining 22 pattern sts, place second marker, pick up and knit 1 st in the corner, pick up and knit 16 sts along edge of gusset, and knit 10 previously transferred heel sts. You now have 35 patterned instep sts and 54 (27 per needle) gusset/sole sts.
Next Round: K10, k tbl 15, k2tog tbl, sl m, work next round of chart , sl m, k2tog tbl, k tbl 15, k10. (26 per needle gusset/foot sts).
First Gusset Decrease Round: K23, k2 tog, k1, work next round of chart, k1, ssk, k23. Next Round: K25, work next round of chart, k25. Continue to repeat these two rounds, decreasing one st each side of gusset every other round until a total of 34 foot sts remain (18 on each needle).
Continue to follow chart for a total of 4.5 repeats, or until foot measures desired length before toe decrease.
Decrease Round: [K14, k2tog, k1, sl m, k1, ssk, k14] twice to end of round. Next Round: knit
Continue to repeat these two rounds, decreasing one st each side of both markers until a total of 12 sts remain.
Rearrange sts so that there are 12 on each needle. Use Kitchener stitch to close the toe.