Cast on 3 sts.
Row 1 K 2, k into front & back of next st – 4 sts.
Rows 2-10 K 2, k into front & back of next st, k to end – 13 sts.
Row 11 K 6, k into front & back of next st, k to end of row – 14 sts.
Repeat Row 11 until there are 120 sts. Work 10 rows even in Garter st.
Next Row K 45, bind off center 30 sts, k to end.
Next Row K 45, cast on 30 sts, k to end.
Work 10 rows even in Garter st.
Dec Row K 6, k2tog, k to end of row – 119 sts.
Repeat Dec Row until 13 sts remain.
Next Row K 2, k2tog, k to end of row.
Repeat last row until 3 sts remain. Bind off.
With circular needles, pick up and knit 60 sts evenly spaced around neck opening. Join, and work around in K2, P2 Rib for 1½ inches [4 cm]. Lay work flat and determine which corner of the Poncho you want in the front. Mark center front of neck opening. Count 8 sts from each side of center front and mark these 16 sts.
Next Round Work in established rib to beginning of 16 sts, bind off 16 sts for front; continue in rib to end of row.
Continue working back and forth in rib on remaining 44 sts for 2 inches [5 cm] more, increasing 10 sts evenly spaced across last row as follows: (Rib 3, k into front & back of next st) 10 times, rib 4 – 54 sts. Work 7½ inches [19 cm] even in Garter st.
Row 1 K 27 sts and place sts on a holder to be worked later, bind off next 7 sts, k to end.
Row 2 K 20, turn.
Row 3 Bind off 7 sts, k to end.
Row 4 K 13.
Row 5 Bind off 7 sts, k to end.
Row 6 K 6.
Row 7 Bind off 6 sts.
Place 27 sts from holder onto needle. With right side facing, join yarn and repeat Rows 1-7.
Sew hood seam. Weave in ends.
If necessary, block Poncho as follows: Dampen Poncho thoroughly. Spread clean towel(s) on a carpeted floor or on a bed. Lay the damp Poncho on the towel(s) and gently ease it into shape, blocking to size, pinning where necessary. Allow to dry completely.