How to increase on DROPS 211-16

Have a question on the Beach Bubbles pattern 211-16 Beach Bubbles / DROPS 211-16 - Free knitting patterns by DROPS Design (garnstudio.com).

I am on the BACK Piece. I have knitted to 5 cm, then pattern says to "increase 1 stitch in each side - read INCREASE TIP. The INCREASE TIP says: “(applies to both side of body): Increase 1 stitch inside 1 edge stitch in garter stitch in each side by making 1 yarn over. On next row work yarn overs twisted to avoid holes. Work the new stitches gradually in moss stitch (A1).”

How is the increase supposed to be done?
Is the increase done in a particular place in the row of stitches?

Welcome to KH!
The increase is worked as a yarn over between the first and second stitch and then just before the last stitch. On the following row, work into the back of the yarn over.

Very nice summer top.

Thank you for the helpful information and your quick response!