Scarf pocket problems!

ABBREVIATIONS: rs=right side, ws=wrong side

With 1 strand each of A and B held together, cast on 12 sts.
Work in St st (k on RS, p on WS) for 6 in. (15 cm), end with a WS row. Slip these sts onto stitch holder.

[COLOR=“Red”] With 1 strand each of A and B held together, cast on 20 sts.[/COLOR]

I’m unsure of what exactly I’m supposed to do with this pocket lining. I slipped it onto a stitch holder…do I cast on with the yarn from it or cut it? Am I supposed to start the scarf part with another 2 balls of yarn?

This scarf sounds like it has a pocket in it. Hold the sts for the pocket lining on some spare yarn or a st holder until the instructions tell you to work with them, You should be able to find the directions for the pocket further down in the pattern. You can cut the yarn and use the same two balls of yarn to start the directions for the scarf itself.

Read further ahead in the scarf pattern and it should have you take the sts on the holder and knit them into the scarf someway. You can cut the yarn, leaving a tail long enough to weave end and use the cut end to CO for the scarf.