Shaping the Toe of a Stocking

I am shaping the toe of a stocking using three needles. N1 has 16 stitches. N2 has 32 stitches, N3 has 16 stitches.
Rnd: N1 (sole) k to the last 2, K2 tog (this is clear) N2 (instep) K xx (X, 16) sts, K2 tog, place marker, k, to last 2 st. k2 together.

What doe k xx (X,16) sts mean?

Welcome to Knitting Help.
If there are 3 different sizes for your pattern, these x’s could refer to the two smaller sizes. Either the xx and X are defined somewhere at the beginning or the end of the pattern, or they’re 0 and for all the sizes you should knit 16sts.
Can you post a link to the patten or give a pattern name?

Thank you for your reply. The Pattern is called "Eastiest Christmas Stocking (let the yarn do the work) from The Bad Sisters Knitting Company. There are three different size. The begining of the pattern does state S (M, L) but throughout the pattern the number of stitches for each size has been stated.

I tried to upload the page of the pattern I’m working on but it’s too big (which I don’t understand…it’s only 1 page) but anyhow, further down it says Repeat rounds 1 and 2, slipping the marker when you get to it until 32 (36, 44) total sts remain. Work decr round only until 8 (X, 12) sts remain. And of course, I’m doing the medium stocking which is the X. So here it is again. I hope I’ve given you enough information to help me. So happy I found this forum. I’ve never done this before and knitting is a new hobby for me. Many thanks for being here.

For this I would go with 8([U]10[/U],12) and work decr round until 10sts remain. For the original question, a common toe shaping is to have the decreases at the end of N1 and beginning of N3 mirrored on either side of N2:
N1 (sole) k to the last 2, K2 tog (this is clear) [U]N2 (instep) K2 tog,[/U] place marker, k to last 2 st. k2 together. N3 k2tog knit to the end of the needle. You could use a combination of k2tog and ssk for these decreases to make a prettier line up the toe shaping if you want.
See what the directions have to say about the marker and perhapes something else that’s going on there. I couldn’t find a picture online.