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Old 08-01-2013, 06:42 AM   #2
salmonmac
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You can pick up sts around the edge of the blanket and then increase in each stitch. Here are instructions for a few different looks for ruffles:
http://www.ravelry.com/patterns/library/baby-blankie-3
http://www.bernat.com/pattern.php?PID=4997&bcfps=1
http://www.ehow.com/how_8309271_knit-ruffled-edge.html
Just be sure to pick up a few more sts at the corners or to increase some extra sts in the corners so that the ruffle doesn't pull tightly there.
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