*Pickup 1 st in ch-2 space of prev round, yo* all around. Don't forget to work that final yarn over just before the marker!
*K1, drop wrap* all around.
*K1, yo* around.
Rep 2 last rounds 4 times altogether (6 purl ridges on back incl first one). About 3" worked on abt 65 sts, ready to work row where wraps are dropped.
(*K1, drop wrap* in next 7 sts. In 8th st: k1, k1 through back loop, drop wrap.) Repeat between brackets all around. Last st (or in each st if less than 8 sts remain) *k1, drop wrap*.
Note: When increasing, your stitch count will not match mine exactly! I give it only to give you some idea of the rate of increase. Picking up extra sts is a bonus, but try not to decrease accidentally anywhere. I know I increased in several places unintentionally, so don't worry about if you do, too.
Next rnd, *K1, yo* around, about 73 sts total.
Cont these 2 rows working fewer sts between increases on every couple of increase rows (where wraps are dropped).
Note: From this point on, I will only mention the increase rounds. Continue to work the rounds where the wraps are formed between each increase (drop wrap) round.
Work 3 drop wrap rounds without increasing (6 rounds altogether), then worked the same increase row as above (now 91 sts).
Next, work 2 drop wrap rounds without increasing (4 rounds altogether), next inc round is similar to previous increase round but working 6 sts as usual then the 7th through both front and back loops (114 sts).
Next inc row *k1, k1fb, k1*, rep around (total 152 sts).
Next inc row *k1fb, k2*, rep around (203 sts).
Rep prev inc row (271 sts).
Work yo row as usual.
Next rnd bind off in knit, treating yo's as stitches to be bound off.
For cuff, you will also be working in the round. Using your crochet hook, sc 2 tog all around, sl st to join.
Move final loop to first dpn.
Pickup 20 sts w dpns.
*K1, yo* around.
Next row *k1, drop yo* around.
Rep these 2 rows 4 more times (6 purl ridges on inside).
If you want a wider ruffle, buy lots of extra yarn. You'd be surprised at how much it takes.
For ruffles, after the 2 crocheted rounds you coudl continue in crochet instead, working whichever stitch pattern strikes your fancy, as long as every couple of rounds you're sure to increase the number of sts evenly. Increase the rate of increase as you go (no pun intended!). You'll have to play with this a bit to see what looks best to you. Remember crochet generally uses more yarn than knitting!
Notes on sizing - The width of the rectangle can be adjusted for the distance around the fullest part of the wearer's arm, or to make a looser or tighter sleeve. Keep in mind though, that the narrower the rectangle, the higher on the wearer's back the bottom of the shrug will fall. The length of the rectangle should be equal to the wearer's height minus 12-14 inches (30-36 cm) for an adult (with arms held straight out to the side at shoulder level, a person's fingertip to fingertip measurement is very close to their height). For a long sleeved shrug, you need only subtract the amount for the person's hands, or more if a shorter sleeve is desired. Also, be sure to subtract the length of the ruffle or alternative cuff you plan to add to the sleeves.
If you must guesstimate the length of the sleeve seams, better to make them too short than too long. You can slightly tighten up the fit of the body opening to make up for if the sleeve seams are too short (see last bullet below).
If you choose a solid colour yarn rather than a multi stranded, heathered yarn, the stitch pattern will show up more clearly. You'll have to either choose a reversible st pattern for the ruffle, or determine whether you want the wrong side to be showing around the collar area or at the lower back. One spot or the other will be inside out.
I picked up sts for ruffle from the outside of the garment. Becuase I"m using a stocking st variation, I wanted the collar to roll outward, and it would do this more naturally if the wrong side was facing out in this area.
The nice thing about picking up sts with crochet hook is that it's easier to try on the shrug to make sure the body opening and cuff openings are the right size. Only one long loop to keep track of instead of moving stitches off the ndl(s) and onto thread or ribbon several times over to measure or try it on as you go.
It's possible to make the body opneing slightly smaller even after the ruffle has been added. From the inside, attach yarn and sc around the opening, every so often sc 2 sts together. This will decrease the size of the opening slightly, but since there is a ruffle attached, it won't be very noticable.