From Interweave Knits:

GAUGE

22.5 sts and 30 rows = 4" (10cm) in pattern before dropping stitches

19 sts and 30 rows = 4" (10cm) in pattern after dropping stitches



Don't be fooled by the specified small needle size - this one-piece garment in soft alpaca is simple and quick to knit!  The lacy look is made by working a simple dropped-stitch pattern.  After the appropriate stitches have been dropped, the stitch gauge is close to that of a worsted-weight yarn.  The piece is worked horizontally from the right cuff across to the left.  A bit of single crochet seams the sides and finishes off the neck and sleeve edges.