Pattern:
Cast on 29 sts.
Row 1: Knit.
Row 2: (K1, M1), K13, (M1, K1, M1), K13, (M1, K1)
Alternate rows: Knit
Row 4: (K1, M1), K15, (M1, K1, M1), K15, (M1, K1)
Row 6: (K1, M1), K17, (M1, K1, M1), K17, (M1, K1)
Row 8: (K1, M1), K19, (M1, K1, M1), K19, (M1, K1)
Row 10: (K1, M1), K21, (M1, K1, M1), K21, (M1, K1)
Row 12: Knit in lace. (i.e. Knit into stitch, then in and out of two holes of the lace and pull yarn through the lot to make new stitch. Lace will gather across row as you go.)
Knit 3 rows.
Row 16: As row 12. (i.e. knitting lace in.) Knit 3 rows.
Row 20: As row 12. (i.e. knitting lace in.)
Instep: Knit 29, slip 1, K1 psso., turn.
Knit 10, slip 1, K1, psso. turn.
Repeat until 35 sts. altogether, turn.
Knit to end of row.
Knit 1 row.
Next row: (for ribbon) K1, *w/fwd. K2 tog. to end of row.
Knit 7 rows.
Next row: Knit in lace, as before.
Knit 1 row and cast off loosely.
To Make Up: Embroider instep if desired (bullion stitch rosebuds look nice). Join leg and foot seams. Oversew ends of lace together. Thread ribbon or twisted cord through eyelet row.
Variation: Using double sided eyelet lace. Knit lace into 14th and 20th row. After ribbon row: Knit in lace in 6th row. Knit 3 rows and cast off loosely.
(This pattern is from the Rodney Branch, Country Women of Australia, "Craft Collections" Book.)