Turn,
Slip that picked up stitch to left needle, knit across to stitch next to first hole, k2tog, pick up one stitch in next hole with right needle,

Turn**
Repeat between the** ’s until all stitches are back in work, simply picking up a stitch on the end loop when at the end of the increasing .

Note, once you have done a few rows on the decrease portion, you don’t need to count, just make a hole by turning next to the last stitch of the next hole. On the increasing portion always k or p together the 2 stitches on either side of the next hole, then pick up stitch in the space next to your needle, turn and slip that picked up stitch. The picked up stitches are, in essence, increases filling in a hole and making up for the k2tog decreases that close a hole. This method leaves no loops and no holes.

Amazing, eh?  Thank you Priscilla!.

Try on the sock as you are knitting it to make adjustments to the fit as you go.  Be really clever and knit two on your circs at once. (You will need to have two balls of yarn for this - although I know folks that knit one sock from the center and one sock from the outside of the band, but that, my friend, is beyond me.)

When you are happy with the foot and now lovely heel of your sock, you'll go back to knitting in the round on both of your circular needles.

Knit the leg as you desire
In the examples with this pattern, in the foot portion I used a ribbing (k2, p2) for the kool-aid socks, and a 2-color simple design for the blue/green samples.

Finish off with a lovely garter edge
For a comfortable good looking end to your project (and a nod to Elizabeth Zimmermann), finish off your sock with knitting 3/4" to 1" of garter stitch.  The orange/brown example has this garter edge.

Garter stitch knit-in-the-round is done differently than when knitting back and forth. Here's how you do it:
Row 1: knit
Row 2: purl
This makes one ridge of garter stitch. Repeat until you have as much garter pattern as you want.

Cast off with EZ's sewn cast off

Knitty has a beautiful description of this fantastic cast-off with photographs. Scroll down to the "Elizabeth Zimmermann's sewn bind off". The sewn cast off is well suited to garter stitch and will never frustrate you with being too tight!

If you want to play with creating self-striping socks like the orange/brown ones, see my online self-striping tutorial.

And, there you have it! A can't miss method of sock-making that will keep you busy for years to come!

Photo Illustrations in this Guide

Square Socks – blue/green
 designed and knitted by Charisa Martin Cairn
Fiber: recycled cashmere sweater (navy) and handspun/handdyed BFL 2-ply sock yarn
(spun by Kristin Pounders)

Self-striping socks- orange/brown
designed and knitted by Charisa Martin Cairn
Fiber: Knit Picks Bare, sock weight; wound off on self-striping warp board, then removed and dyed with Kool-Aid: orange, cherry, and grape. (Grape mixed with orange = brown.)

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Online references used in this sock-making article:

Knitting on two circular needles

Judy Becker’s perfectly magical cast on

Priscilla Wild’s Short Rowing, No Wrapping, No Unwrapping, No holes, No counting, No muss, No fuss, No loops Short Row heel instructions - http://groups.yahoo.com/group/Socknitters (you must be a member of this Yahoo group to access the file, however, it is reprinted here in this article with Priscilla's permission.)

Elizabeth Zimmermann’s Stretchy Sewn Cast Off

Dyeing Self Striping Yarn

 Update: 10 April 2008
Do you prefer a standard heel and heel flat in your sock?
Judy Gibson very graciously allowed me to modify her generic “You’re Putting Me On” sock pattern to work for two circular/or magic loop method of toe up socks. The updated pattern includes directions (link to alternate pattern) for a standard heel and heel flap socks knit from the toe up. Click this download link.