I am making this as a cap-sleeved pullover for Gemma, knitting in the round just after dividing for the sleeves.
I did this by overlapping and knitting together the first and last four stitches (button holes on top) and then continuing in the round.

I am so pleased with the way this looks that I think I will end up doing another, long-sleeve version in superwash merino for fall and winter.

Have decided to add a row of the yarn-over detail before the garter stitch border on the bottom.

4/26/12--washed and blocked and waiting for buttons.

5/8/12--after looking for the perfect buttons, I got tired of it hanging there and just sewed on a couple from Walmart. They actually look pretty good! And Gemma loves it.

Will do this again!