When you get to the point in the pattern when it says "turn", you do exactly as it says and turn your work around to the other side. It doesn't matter that there is still one stitch on the needle. You just leave that stitch there and turn your work onto its other side and knit back according to the pattern. Everytime the pattern says to "turn", just turn your work around so that the right needle becomes your left needle and keep on following the pattern.
Hope that made sense.
Good luch with your pattern (it's very cute!)