Divide for sleeves on baby sweater

Not sure what to do here…
Cast on 8 sts and join to front sts.
This is a baby sweater knitted from the neck down. I am at the point “divide for sleeves”. I have already slipped the stitches for both sleeves on to scrap yarn.

Welcome to KH!
There’s a couple of things it could be. Can you give us a link to the pattern or a pattern name? Not a quote of the whole pattern or a large section of it please since it causes copyright problems.

It’s the “lightweight baby tunic” Knitting Pure and Simple 1501

Sent from my Verizon 4G LTE Droid

The most likely step is that you’re adding sts at the underarm where the sleeves were slipped off the needles. You can use a cable or knit cast on here. Here’s a video to show how.