Reading Pattern Inc 1 st in first st

I’m new to knitting, have one scarf under my belt and thought I’d try a baby blanket. Unfortunately I can’t get past the 1st row instructions.

Cast on 2 sts. (ok, i get that, I’ll have three loops over my needle)
1st Row: Inc 1 st in first st. K1. 3 sts.

I’m confused on how to increase in the first stitch. I’ve been using the continental method of knitting. So my loops are on the left needle so do I just make a loop onto the left needle for the increase or do I do a knit stitch then the increase? And I don’t understand K1. 3 sts. If I increase one I’ll then have 4 stitches. Or does it mean to knit the last three sts that are on the needle?

If this helps Row 2: (RS). K1. (yo. K1) twice. 5 sts.

Thanks in advance for any help!!

When you cast on 2 sts, you should have 2sts on the needle, total. If you use a slip knot, count that as one st and cast on one more. For the increase in the first st, try a kfb (knit front and back in the stitch). There’s a video to show you how to do this on the Free Videos tab at the top of the page under Increases.

The first loop counts as the first st, so you begin with only 2 loops on the needle. When a pattern says to inc[B] in[/B] a stitch, that’s a kfb (or pfb). The other incs will add a new st between other sts, like the YOs on the next row.

Wow, fast responses! Thank you so much, both comments very helpful!

Yes, your cast on stitches always includes that first slip knot. The yarn over (YO) increases are going to give you a hole in the work. It will look like a lace or a mesh, depending on what your pattern says.