The best advice I can give after pt'ing two girls- wait till she's ready. Otherwise it will just stress you both out. It will happen when it happens; don't let anyone tell you it's time. If she's ready, then it's just a matter of practice. I put my girls in panties (the thick, absorbent kind) and did a lot of laundry for a week or two- and then they were trained. #2 generally takes longer, and lots of kids are 'afraid' of using the potty for #2. Not sure what that's about, exactly, but apparently for a little kid there is something really disturbing about seeing a solid 'part of your body' going down the drain. Makes sense, I guess.
I think taking your knitting in there is a GREAT idea because it will let you have more patience- and patience is the key.
Also- overnight can take a LOT longer than daytime training. My first daughter training at 2 years, 3 months during the day, but couldn't make it through the night till she was 5. It's just not physically possible for some kids to hold it that long. Rather than continue buying diapers, we just got her up mid-way through the night and took her to the potty.