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Well we have finished the leg and it is time to go to work on the heel. We start by knitting a heel flap then the magic happens and we turn the heel. Then we pick up stitches for the gusset and start knitting the foot.

Don’t panic!
It is easier than you think- just follow the instructions and watch the magic.

We will only be knitting on Needles 1 and 4 for the heel flap and turn, so what I normally do is grab some cotton and thread the stitches from Needles 2 and 3 onto it so the needles don’t get in the way.

To get the stitches from Needles 1 and 4 ready for the heel flap, knit across Needle 1 and then Purl all the stitches from Needle 1 and Needle 4 onto one Needle.

Just to remember my example is X=16.

For the heel:
Row 1: Slip the 1st stitch (Sl1), Knit the next stitch and repeat till the end.
Row 2: Slip the 1st stitch, then purl till the end.

Repeat this till you have 2X (eg. 16×2) rows completed and be sure to end on a wrong side row. You will have 16 ‘slipped’ rows.

I am including video links from here to help you with each section.
Heel Flap Help Video

Heel Flap with Slip Ridges numbered.

From the pattern:
Now to turn the heel. This looks deadly confusing. Do not quail in fear. This technique is called “short row shaping,” so-called because the ROWS are SHORTER than normal, as you turn around IN THE MIDDLE OF A ROW and go back the other way, in direct violation of everything you know about knitting.

Row 1: Sl1, K (X + 2{18}), K2tog, K1, turn. (Yes, turn. TURN IT AROUND. It will be fine.)
Row 2: Sl1, P7, P2tog, P1, turn.
Row 3: Sl1, k to within one stitch of gap, k2 tog across gap, k1, turn. (look at your needles. See the gap in between the stitches you’ve worked in this short row in the middle and the stitches that still need to be worked ? That’s the gap.)
Row 4: Sl1, p to within one stitch of gap, p2tog across gap, p1, turn.

Repeat rows 3 and 4 until all stitches have been worked. You may not be able to work the final k1 after the decrease on the last row. That’s fine. (X+4{20}) stitches remain. (If X is odd, the number will actually be (X+3{19}), due to the lack of a final K1 stitch.) If you ended on a right side row, proceed with the gusset; if you’ve ended on a wrong side row, K across plain.
Heel Turn Help

Finished Heel Turn

Picking up the stitches on the side- Starting the gusset.
This video will help explain the gusset.

Using N1 as your working needle, pick up X stitches along the side of the heel flap. This Step by Step guide or these video’s will help explain picking up stitches pt 1 and pt 2.

Knit across N2 and N3.

Using N4 as your working needle and N5, pick up X stitches along the OTHER side of the heel flap. Still using N4 as the working needle, knit ((X+4)/2{10}) stitches off of N1 (((X+3)/2) if x is odd) You should now have 4 needles in the work. The join between N1 and N4, at the bottom of the heel, is now the beginning of the round.

GUSSET: This is the part where the sock decreases as your foot gets narrower over the instep. For the first round after picking up the stitches I like to knit the sides through the back loop to tighten the picked up stitches.

Round 1: K to 3 stitches before end on N1, K2tog, K1. K across N2 and N3 in pattern. On N4, K1, SSK (or k2tog tbl), and knit to end.
Round 2: Knit plain

Repeat these two rounds until the foot needles (N1 and N4) have X(16) stitches on each of them. Video: Finishing the Gusset.

Finished Gusset