From what I'm understanding from the directions, you just start on the edge--which will be the center of the side of the leg. You'll knit across the front half of the left leg and the front half of the right leg with one needle, then turn and knit the back half of the right leg and the back half of the left leg. (the elephant's right and left)
Just start knitting with the new yarn.
Now you'll have created the body stitches and will continue to knit up to the shoulders.