It is the coronet hat pattern,
http://www.knitty.com/ISSUEwinter03/PATTcoronet.html
I am in the “hat body” part.
So, actually the step before says [B]K0[1,0]. *K2tog. Repeat from * around. [/B]
I am doing the first size (smallest), so I suppose when the pattern says K0[1,0], I would knit no single stitches, and just knit 2 together all the way around?
Then when it says: [B]K1 [1,0] *K2tog. Repeat from *around.[/B]
I suppose I would knit one single stitch, then knit 2 stitches together all the way around.
Then for the last round, which says [B]K1[0,0]. *K2tog. Repeat from * around.[/B] do the same exact thing for the last round, Knit 1 stitch, then knit 2 together all the way around.