I'm reading k2tog (K1, yfwd) on a pattern... i understand what each means (knitting 2 stitches together, yarn fwd etc), but do i knit one stitch and put the yarn across in between the two stitches, or what? It's making my head hurt lol. I would really appreciate it if someone can give me a step by step account of how i should go about executing it properly, thanks for your time
K2tog then you'll repeat - knit 1, yo, k1, yo. A YO is like making a knit st, except you don't have the R needle inserted into a stitch on the L needle, it's just wrapping the yarn around the needle. The term yfwd is British and describes how the yarn is placed while in the US patterns tell you what the result is.
To expound on what suzeeq has said, in this case "yfwd" is just another way to say "yo". It means pull the yarn forward (between the needles like you said). Since the yfwd is followed by a knit stitch, it forces a yarn over.
I was avoiding mentioning that a yo is made when you knit a stitch because it can sometimes give the mistaken idea that all YOs are made by bringing the yarn to the front and knitting a stitch. The knit stitch is not part of the YO but in this case happens to be the next stitch in the pattern. Sometimes the next st written will be for a k2tog, or sl 1, k1, psso. You wouldn't knit a st after bringing the yarn to the front in those cases. So I wanted to stick to YO just being wrapping the yarn around the needle.