I did this after my Feb. Lady sweater. I made the following mods/notes:

Worked two rows in garter adding the applied i-cord edge as I go (Right side rows - knit to last 3 st, yarn to back, slip 3 purl-wise, turn, purl 3 stitches, knit as directed 
Wrong side rows - knit to last 3 st, yarn to front, slip 3 purl-wise, turn, knit 3 stitches, knit as directed). This will be done over the edge stitches of the entire sweater.

On row 3, I added a button hole. After the i-cord edging, I knit 2 stitches (total of 5 stitches worked), yo, k2tog, and worked the rest of the row as before.

Continued in pattern (with the added i-cord edging) until the end of the first 8 rows (4 garter ridges).

Increase row: Completed as described in the book. I did the traditional m1 bar increase (lift the bar between the stitches, place it on the left needle, and knit through the back loop).

Next right side row, I added another button hole the same way I did the first.

Worked as described in the pattern until the second increase. Completed increase row as before.

Following right side row, I added another button hole the same way I did the first two.

Work as described (4 garter ridges) until the next increase row. Remember that you are doing 1 less increase on this row, than the one before. I didn’t do the last increase on the row.

On next row: Do i-cord edging, k1, place marker, p all stitches (as listed in gull stitch pattern) to the last 4, place marker, k1, i-cord edging.

Begin to work row 1 of lace pattern. I worked a total of 2 repeats of lace pattern before dividing for the sleeves.

Dividing for the sleeves: I worked the first 25 stitches in row 1 of the lace pattern. Left them on my main circular needle and began using a second circular for the first sleeve. I CO 7 stitches using a cable cast on, worked back over these stitches in row 1 of the lace pattern and continues working in the lace pattern until a total of 35 stitches were on my needle (this includes the 7 that I picked up). I turned my work, cast on 7 more stitches using the cable cast-on. Purled all stitches (including the ones I just picked up) as stated for row 2 of the lace pattern.

I worked until my sleeve reached 4.5 inches (a total of 8 lace repeats including the 2 previously done) and began to work in garter stitch. I worked 1 inch or 4 garter ridges in garter stitch and bound off with the right side facing me.

I then returned to my first original needle. I rejoined the yarn and picked up and knit the 14 stitches cast-on for the sleeve, worked in row 1 of the lace pattern for the next 42 stitches (the back of the body) and repeated the dividing and sleeve process for the second sleeve.

I again rejoined the yarn, picked up the 14 sleeve cast-on stitches, and worked in pattern until 4 stitches remained on the body. I k1, and did the i-cord edging.

I knit the body of the sweater as stated in the pattern. I did bind off on the wrong side of the piece, purling the bindoff for the first 3 and last 3 stitches and knitting for the rest.