Yarn:  For these socks, I used one skein of Knitaly by Colorado Yarns, a worsted weight yarn (each 100 gram skein contains 215 yards) in color 613, a lovely variegated green. The socks that I have knit out of this yarn wash in the machine well, but after 6 months of frequent wear, they are a little smaller. As always, YMMV. These socks are rather short, and I had a bit of yarn left over from the single skein I used - perfect for stripes in an upcoming project.

With this yarn the socks will fit in Birks or loose shoes or other sandals, or just wear them around the house - it all depends on how loose you wear your shoes.

Gauge:  5 stitches per inch with a US #3 bamboo needle in stockinette stitch.

Needles:  I prefer a wood or bamboo needle to knit socks.  They are warmer to my always-cold hands, and they give a little as I knit, making them more comfortable.

These instructions assume that you are familiar with DPN needles and that you know how to knit and purl.  I place the stitches on three needles and knit with the fourth.

Lets get started:

Cast 45 stitches onto a circular needle at least 3 sizes larger than the needles you used for your gauge swatch - you want that first round to be loose.  Start the first row of ribbing right onto your DPN needles: Knit 2, Purl 2 until there are 14 stitches on the first needle (needle 1).  Start the 2nd needle Purl 2, Knit 2 until there are 20 stitches on the second DPN needle.  Start the third needle Purl 2, Knit 2 until there are 10 stitches on the needle.  There will be one stitch left on the 4th needle.  Put this last stitch on the beginning of the 1st needle so that when you join in the round you will Knit 2 together for the first stitch, then Knit one, and off you go with 12 stitches on needles 1 and 3 and 20 stitches on needle 2 (44 stitches total.)  If you are familiar with DPNs you will be able to visualize this when you get there. 

I like the stitches to be arranged this way for the ribbing of this sock because the beginning of each needle starts with a Purl stitch, helping to eliminate the ladders that can form where the needles come together.

Knit 20 or so rounds of Knit 2, Purl 2 ribbing, or however much you like at the top of your socks, or until you're tired of it.  Some people like to knit the whole leg in ribbing, but I find this boring and tedious, so I prefer only a little ribbing at the top, and then stockinette for the rest of the leg. You can always use a contrasting color for the rib, heel, and toe if you experience any YSO (Yarn Shortage Anxiety)

The leg of this sock is worked in stockinette stitch. I worked only 25 rounds before I started the heel flap.

Rearrange the stitches on the needles so that there are 22 stitches on needle 2, and 11 stitches on needles 1 and 3.

The heel:

I like the feel of a Dutch heel.  In order to get to the heel, we have to knit a flap.  I like to use a heel stitch for the heel flap because it makes a firmer fabric, and it pulls in, making the heel flap narrower.  I have a narrow heel, so this fits me just right.  If you have no problems with a narrow heel, you can work stockinette stitch for the same number of rows, instead.

The heel flap is knit on half of the foot stitches - 22.  To knit the heel stitch -

Row one - Slip 1 stitch, Knit 1 stitch all the way across - 22 stitches.

Row 2 - Slip the first stitch and Purl all the way back - 22 stitches.

By slipping the first stitch of each row, you will have a series of loops on each side of the heel flap, which makes it easier to pick up stitches for the gusset.

Repeat these two rows 10 times, or about 2.5" - 3".  It will depend on how deep you need your heel flap.  Measure from your anklebone to the floor to get a rough idea.  The only sure way to know is to knit a sock and try it on.

Now to turn the heel: It sounds scary at first, and confusing, and illogical, but if you follow the instructions blindly, without letting your brain argue, and have faith that everything will turn out fine, you'll be able to do it will little or no hair pulling.  You will be working with the stitches of the heel flap - 22 stitches.

The Round Heel goes like this -

Row one - Slip the first stitch, Knit 12, Knit 2 together, Knit 1, turn.

Row two - Slip the first stitch, Purl 5, Purl 2 together, Purl 1, turn.

Row three - Slip the first stitch, Knit 6, Knit 2 together, Knit 1, turn.

Row four - Slip the first stitch, Purl 7, Purl 2 together, Purl 1, turn.

Row five - Slip the first stitch, Knit 8, Knit 2 together, Knit 1, turn.

Row six - Slip the first stitch, Purl 9, Purl 2 together, Purl 1, turn.

Continue working one more stitch on each round until 14 stitches remain.  You will not be knitting every stitch on each row - you will be creating short rows that will form a cup that will follow the shape of your heel.

On this particular pair of socks I carried the heel stitch through the heel turning and about halfway through the gusset decreases. On the RS rows, simply work Slip 1, Knit 1 across to the decreases and purl back to the next decrease as usual. I think that this type of heel turn will wear longer, and I'll post the results after I've worn and washed them a few times.

Knit across the 14 heel stitches. 

Gusset:

With a crochet hook, pick up one stitch in each of the slipped stitches on the sides of the heel flap.  The number will vary, and that's okay.  Its always good to fake it and pick up a couple of extra stitches at the beginning and end of the heel flap - this will help eliminate any holes.

I picked up 18 stitches on the first side of the heel flap, Knit across the stitches previously neglected on the third needle (the instep stitches,) then picked up another 18 stitches on the other side of the heel flap, and Knit across the heel stitches to the beginning.

This brought my total stitch count to 68 stitches.  This may vary, so don't be too worried about it.  The important things are these:

1.   It's always better to pick up more stitches than less - this way your socks won't have gaps at the sides.

2.   Be sure that you pick up the same number of stitches on each side of the heel flap.  If you can''t, its not a big deal, just make sure that you decrease on the side with more stitches in the first round, so that they are even.

Now for the gusset decreases:

Knit one round even - this will even out the picked-up stitches and make the decreases easier to perform - picked-up stitches sometimes are tight and don't like to be knit together. 

Put the stitches on four needles again: The picked-up stitches on the left side of the gusset on needle 1, the instep stitches on needle 2, the picked-up stitches on the right side of the gusset on needle 3, and the heel stitches on needle 4.

Next round:

Needle 1: Knit to the 3rd stitch from the end, Knit 2 together, Knit the last stitch.

Needle 2: Knit the instep stitches even.

Needle 3: Knit 1, Knit 2 together, Knit to the end.

Needle 4 (heel stitches) Knit even across to the end.

Next round: Knit even.

You can repeat these two rounds until you reach 44 stitches, alternating a decrease round with an even round.  This works for most feet.  If you have a narrow heel or foot, you may need to do two decrease rounds, followed by one even round until you reach the number of stitches you need.  Knitters choice.  If your socks are regularly loose around the ankle, you may want to try this way, if not, consider yourself lucky and continue on to the foot.  Rearrange the needles so that there are 22 stitches on needle 2, and 11 stitches on needles 1 and 3.

After the gusset decreases are done, it's time for the foot.  This is just endless rounds of stockinette stitch, around, and around.  It helps to make a mark on a scrap of paper or use a row counter if you are as anal as I am about making the socks identical.  That way you only have to measure one sock, and the second becomes very meditative - just stockinette stitch and marks on the paper.

Stop knitting when the sock measures 2" less than the length of your foot from the back of the heel to the tip of your longest toe.  Measure the sock from the back of the heel flap to the bottom of the current round of stitches.   This may vary slightly depending on your row gauge.  If you measure how far 19 rows is, you can subtract that from your foot measurement, and calculate how soon to start the toe decreases. I generally make my socks ¼" - ½" shorter than my foot to allow them to stretch slightly when worn and fit perfectly.