I have just finished a knitting-related novel "The Knitting Circle" by US author Ann Hood and would reccommend it to anyone who likes to read. I found it very uplifting and moving. Basically, it is the story of a mother who learns to knit as she grieves the loss of her daughter (based on the author's real-life experience). She joins a knitting circle and the book takes us through the lives of the other circle members and why they knit.
I would just say that the book does deal with the death of a child and also breast cancer - just a warning if you have/are affected by these issues