I've made the blanket buddy before but the Lion Brand pattern that I used was the same as the link that aprilbetty gives in her post.
The rows around the 'Shape head' look like this:
Rows 48-49 Bind off 12 sts, knit to end of row – 40 sts.
Rows 50-61 K 2, k2tog, yo, k2tog, knit to end of row – 28 sts.
Change to smaller needles.
Row 62 K2tog across row – 14 sts.
It has 28 sts before the head and they just become incorporated into the head as Ingrid suggests. Is your pattern different? Maybe a smaller size? Can you post the relevant part of the pattern you're using?