These are the directions basically:
Cast on as described above, so you have 60 strands/stitches to work on the next row.
Row 1: sl first st, *with both colors in back k1 W, with both colors in the front p1 R, repeat from * across to last st, with both colors to the front p last st with both colors.
Row 2: sl first st, with both colors in back k1 R, with both colors in front p1 W, *with both colors in back k1 W, with both colors in front p1 R, repeat from * to the last two sts, with both colors in back k1 R, with both colors in front p1 W, p last st with both colors.(It's this row I found the "error" with. I followed the directions with both rows, but got stuck prior to beginning the third row. How exactly am I supposed to read the chart?
Each square on the chart represents two sts, one facing you to k in the color shown and one not shown to be p in the color not shown.
When the chart is completed use the smaller needle and bind off in alternate colors; k the k sts and p the p sts in the colors they were worked on the previous row. When you get to the last 3 sts, k across these sts in one color (either, it doesn't matter which) and work as an I-cord.* I worked in alternate colors but it could be done in one color. Work for about 20 rows and then sew the end down to the beginning of the I-cord for a loop to hang your hot pad.
*I-cord instructions (video above): On double point needles, k 3, do not turn the needle but slide the sts to the right end of the needle they are on, pull the yarn across the back tightly and knit the sts. Repeat this for the length desired."