With 1 strand of each color held together, cast on 60 sts. Work in garter st for 2 rows.
2-Row Buttonhole (optional)
Next Row (WS) K 3, bind off 2 sts, k to end.
Next Row Knit to bound-off sts, cast on 2 sts above bound-off sts, k to end. Knit 2 more rows. Next Row (WS) *Purl 15, place marker; repeat from * 2 more times, p 15.
Next Row Knit into front and back of first st (inc made), *knit to 1 st before marker, inc, slip marker, inc; repeat from * 2 more times, knit to last st, inc in last st – 8 sts increased.
Next Row Purl. Repeat last 2 rows, inc 8 sts each RS row, until there are 100 (116) sts. Work even until Capelet measures 7 (9)" [18 (23) cm] from beginning. Work even in garter st until Capelet measures 9 (11)" [23 (28) cm]. Bind off loosely.
Weave in ends. Sew on button.