Ok, I promised you something other than a scarf or a headband, so the shrug it is. I could knit these till the cows come home. It's just one long piece, 15 inches wide and 80 inches long. A soft, drapey fabric works best This piece is knit from 3 skeins of Lion Brand Homespun yarn. I love this yarn! And yes it's an acrylic, but it is so colorful and beautifully blended that I can overlook that. It comes in a zillion colors, one better than the next and is available at your local craft stores as well as online at Lionbrand.com. It's a textured bulky yarn so I knit it on every other needle on tension 8.
Cast on 40 stitches every other needle
Knit 340 rows at tension 8
Sew the ends together leaving 8 inches at one end open to form collar.
Fold the piece in half with the sewn seam at one end. Mark the other end with a thread..this marks the half way point.
Sew the edge together leaving 8 inches open at each end to form sleeve openings