Basically, you're picking up the stitches from your provisional cast on. That's the initial row that you knit with the cotton scrap yarn. This is done so that you can seemlessly pick up sts and knit in the opposite direction. You can insert the needle the way Amy demonstrated in this video
for inserting the needle into a destination row. (Of course, you're not going to ripping back your knitting just re-inserting the needle the way she does.) Once you have the needle inserted, you can cut and pick out the scrap
yarn and you'll have live sts on the re-inserted needle. This is going to be easier to do if you use a smaller size needle for re-inserting.