You can use any size needle and yarn to create different size gnome babies!
Cast on 10 stitches, leaving about a 10" tail for sewing up the leg
Knit 10 rows (garter stitch).
Cut yarn leaving a 5" tail.
(push first leg to bottom of needles)
Cast on 10 stitches on same needle that first leg is on this time leaving about a 15" tail.
Like first leg, knit 10 rows (garter stitch).
Now knit both legs together (all 20 stitches). This will form the body.
Knit (garter stitch) for 16 rows
Now switch to the skin color - and knit 10 rows in the stockinette stitch (this is one row garter, one row purl). Knit 10 rows. On 11th row knit every 2 stitches together giving you 10 stitches.
Next bind off all 10 stitches.
Sew up the Body:
Start with the shorter piece of yarn on the leg and thread the needle. Fold the leg in half to meet in the middle. (Wrong sides together - the smooth part of the head will be on the inside) Start with a running stitch around the bottom of the leg and pull. Then stitch up the side of the leg.
Finish by making a knot with the other yarn end that is in the middle and tuck yarn ends to the outside.
Now take the longer string at the end of the other leg and thread yarn needle. Work just like the first leg except continue stitching up the back of the gnome baby. When you reach the skin color - tie off with the other colored yarn. Turn body right side out.
Stuff body with wool. Stuff legs first. I use the end of the knitting needle or crochet hook to get the wool in firmly. Stuff up to the beginning of the head.
Now take the yarn that you used to knit up the back of the body and make a running stitch between the body color and head color to form the neck. Tie a knot.
Now tuck all the loose strings into the head and take the skin color hanging yarn and thread needle. Sew up back of the head only to the top. Cut body color loose string inside head.
Stuff head with wool.
Now use a running stitch around top of head and tie off with other yarn string. Cut hanging yarns almost to the knot.
Cast on 8 stitches and knit 8 rows cast off.
Sew up cast off edge with a running stitch and then sew up side. Stuff Arm . Repeat for Arm 2.
Cast on 22 stitches. Knit four rows in garter stitch (Knit every row) for three rows. Then knit in stockinette stitch (purl a row, knit a row) for 3 more rows. Continue in stockinette stitch and knit two stitches together at the beginning and end of each knit row (every other row).
Continue this until there is only one stitch left. Cut yarn long (about 20") and pull through loop.
Put yarn in yarn needle and sew up back of hat. Finish by sewing hat around the head.