This string knitted gnome is best for someone with intermediate knitting skills, but can be done by anyone who has mastered the basic skills.
One skein each of medium weight red, tan and blue yarn and matching needles, two black buttons for eyes, a piece of white felt, scissors, an embroidery or upholstery needle and glue.
Cast on 3 stitches in the red yarn. Knit 2 stitches, then do a “Make One Away” (M1A) increase*. Knit the last Stitch. When you turn the work, purl 1 stitch, then create a “Make One Toward” (M1T) increase*. Purl 1 stitch, and then make a “Yarn Over” (YO) increase. Purl the last stitch. Turn the work. Knit one, then YO. Continue knitting in stockinette stitch, adding an increase on the second and next to last stitches of every row and one in the middle stitch of every row, until you have knit 12 rows, or approximately 2 1/2 – 3 inches. You should now have 34 stitches on your needle.
It is time to change yarn color. Begin the next row with the tan yarn. Continue as above, but double the increase on the middle stitches. Knit 4 rows in stockinette stitch with 4 increases per row. You should now have 50 stitches on your needle.
Change to the blue yarn for the next row. Knit 12 rows in stockinette just as you did with the red yarn, adding 3 increases to each row. Beginning with the 8th row, you will start decreasing on each end and omit the increase in the middle. To decrease, either “Knit 2 Together” (K2Tog) by sliding your working needle under two stitches and knitting them as one, or knit 2 stitches and slip one over the other on the working needle, as though binding off. Continue knitting and decreasing in this way for 12 rows. Bind off, leaving an 18 inch tail of yarn. You should have now a piece somewhat resembling an upside down kite.
Thread your needle with the tail yarn. Fold the piece so that all the edges line up to create a 3-sided pyramid shape. The decreased section will be the bottom of your pyramid. Sew the edges together, stuffing a little bit at a time as you go. Tie off the tail and weave the end into the work.
Glue the buttons onto the tan section for eyes. Cut a fat crescent from the white felt to make a beard and glue under the eyes.
*If you prefer, you may replace one or both M1 increase with the simpler YO increase.