Pretty knitted edging

I love the edging on this pretty knitted baby matinee coat from a Lee Target wool pattern. It's pretty, and weighty enough to stop the edge of the garmet curling.


To make the edging:

Work 4 rows in st st.
Row 5: K2, * yfwd, K2 tog, rep from * to last st, K1
Work 3 rows in st st, commencing with a purl row.
Next row - make a hem by knitting together one st from the needle and 1 loop from cast on edge to end of row.

Here's the stitch science - the holes you create in row 5 with your yarn forwards become the scalloped edge of the hem. Pretty clever...