A note from Jane:
A few knitters need a little help with what to do after the first 12th rows, so here is my advice:
You work the first 12 rows, this forms the pattern and is repeated throughout, except for the knit stitches at the beginning of the odd rows and at the end of the even rows. These amounts change.
After the first 12 rows, you go back to the 1st row and on this 1st row you start increasing 1 stitch away from the lace edging, so the first time it will be k1, m1, k1, yon, k2togetc.,.
Then you work 3 rows in the pattern, so this will be the 2nd, 3rd and 4th row.
Remembering to k2 instead of k1 at the end of the 2nd & 4th rows and k3 at the 3rd.
Then on the next increase row, the 5th row you will be k2, m1, k1, yon, k2togetc.,
Your 6th and 8th rows will be ending k3 instead of k1 and 7th row will be k4 because now you are increasing by 2 stitches.
This then is how you continue, increasing at these ends as you go.
It can seem complicated when written down but once you know the position of the increase you just work the lace pattern one side and garter stitch the other.