Gauge:
5 rows by 4 stitches = 1 inch

For newborn size I use #6 needles and regular worsted weight yarn. 6-12 months size is in ( ).
For preemie I use baby yarn and #5 needles.

Directions:

Cast on 20 (24).
Work knit 2 pearl 2 ribbing for 5 (7) rows.
Knit one row pearl 1 row for a total of 12 (16) rows.
Knit 3, knit 2 together, * knit 4, knit 2 together, repeat from * across.
Pearl next row.
Knit 3, knit 2 together, * knit 3, knit 2 together, repeat from * across.
Pearl next row.
Knit 3, knit 2 together, * knit 2, knit 2 together, repeat from * across.
Pearl next row. Cut thread leaving enough to sew up. Thread through the stitches on the needle, then sew along side seam.