With size 7 needle, cast on 66 st.

Work in pattern:

Row 1: p1 (k4, p1) to end
Row 2: k1 (p1, k2, p1, k1, p4) to end
Row 3: p1 (k4, p1) to end
Row 4: k1 (p1, k2, p1, k1, p4) to end
Row 5: p1 (k4, p1, Cable 4, p1) to end
Row 6: p1 (k4, p1) to end

Continue in pattern until piece reaches 8 inches.

Start decrease. Decrease one st on each side every 3 rows ten times.

Knit in pattern with decreases for 30 rows, then bind off.

Underpanel (in color 2):

Cast on 4 st. Knit whole pattern in pattern above, starting with non-cable in the middle. Increase every 3rd row with the last increase on row 21 so that you have a total of 18 st (the two outside st on each side should be purl). Continue in pattern for a total of 44 rows. Bind off (p all) on row 45.

(block underpanel if necessary before joining.)

Join small top edge of underpanel to the straight edge sides of the back panel. Sew together from the neck for 4 inches, leave a 2.5 inch hole for the leg, then continue joining to end (panel should end where the back panel starts tapering).

Bottom Edge:
Once both sides are joined, pick up stitches along the bottom with a size 6 needle and knit in k1, p1 rib for 5 or 6 rows (until edging is approx 1 in long). Bind off edge in k1, p1 bindoff.

Neck:
Pick up stitches around top edge with size 6 needle. In the first row, k1, p1 over st and p2 together every 4th st to taper in the neck edging for the first row only. Be sure that the pattern row ends with a p stitch. Knit in pattern over 5 or 6 rows total (until edging is aprox 1 in long). Bind off edge in k1, p1 bindoff.