Notes for Beads:
For small size, before casting on stitches, string 28 beads onto your wool. I found this video of Paula from Knitting Pipeline demonstrating how to do this. Added beads on the first working of rounds 1, 3, 9 and 11 of the Lace Pattern.

On rounds 1 and 9, Add a bead, purl 5 (repeat italicized text to end of round. On rounds 3 and 11, knit 3, add a bead, purl 5 repeat italicized text to end of round.

Used German twisted cast-on.

I knit the hem together instead of sewing it later. Pick up every other stitch on the cast on edge, fold the needle up to a 3 needle bind off position and knit every other stitch together with a stitch from the back needle. This creates a nice stretchy hem. I prefer that to sewing later. ;)

I did a quick search and found this video that demonstrates one way to do this. Go ahead and skip to 5 minutes into the video to where she starts to knit the cast on row together with the next knitting row. Note: I only knit every other cast on stitch together. This give a nice, stretchy cuff.

Note: This pattern was originally posted here but has since been archived. There are lots of projects to look at under that listing, though. :)