I've put in bold, after each line in your pattern below, the number of stitches you will have after each row when you get ready to turn for the next row. Hope this helps a little!
Originally Posted by ironchef31
Cast on 5 stitches. Knit 1 row. (5 stitches)
Next row Knit 3, yo, k 2. (6 stitches... the 'yo' (yarn over) created one extra stitch.
Next row Knit 3, yo, k 3. (7 stitches)
Next row Knit 3, yo, knit to end. (since you had 7 stitches in the previous row, the yarn over in this row makes it 8)
Repeat last row until there are 126 stitches on needle.
You are now repeating the last row (start the row with knit 3, do a yarn over, and then knit to the end) on every single row. This means every row will be 1 stitch more than the previous row until you have 126 stitches on your needle. Then you begin decreasing (as described in the "Next Decrease Row" shown below) until you have only 5 stitches on your needle. Then you will bind off those last 5 stitches. You are making the blanket from corner to corner.
Next Decrease Row Knit 2, k2tog, yo, k2tog, k to end.
Repeat last row until there are 7 stitches on needle.
Next Decrease Row Knit 2, k2tog, k2tog, k to end.
Bind off remaining 5 stitches.