Gauge

6 stitches = 1 inch in Daisy Stitch pattern with larger needles
5 stitchess = 1 inch in stockinette stitch with larger needles

Finished Size

7 inch circumference (fits most women)

Pattern

With color A and #7 needles, cast on 40 stitches.

Distrubute the stitches onto 3 needles and join for working in the round, being careful not to twist the stitches.

Round 1: *K1, P1, rep from * to end of round.

Repeat round 1 until piece measures 1 inch from the beginning.

Next round: With color B and #8 needles, knit.

Next round: *[K3tog, yo, k3tog] into the same 3 st, P1, rep from * to end of round.

Here is a breakdown of [K3tog, yo, K3tog] into the same 3 st, the core of the Daisy Stitch:

• K3tog: Put the right needle into the next 3 stitches. Knit like usual, except do not finish the knit, instead allow the stitches to remain on the left needle.
  

• YO: Bring the yarn forward between the 2 needles.

• K3tog: Put the left needle back into the same 3 st. Knit, and, this time, finish the stitch by dropping the 3 stitches from the left needle.

• Try to keep the 3 new stitches in order on the right needle, ie make sure that the yo is the middle stitch.

 
Next round: With color C, knit for 1 round.

Next round: Slip 1, P1, *[K3tog, yo, K3tog] into the same 3 st, P1, repeat from * until 2 st left, slip first stitch from beginning of round onto the needle that has 2 st left on it (so that now there are 3 st on the left needle), [K3tog, yo, K3tog] into the same 3 st.

Slip the last stitch from right needle back to the left needle so that it is the first stitch of the next round (the first stitch of the round is worked twice: once as the last stitch of the previous round and once as the beginning stitch of the next round).

Starting with color D, repeat the last 4 rounds. Change colors every 2 rounds making sure to carry the yarns you're not using up the inside of the hand warmer by catching them between the working yarn and the needle.

In this picture the pink yarn is catching the white and rust yarns as it makes its first K3tog of the round.

Make 16 and a half stripes, finishing with a knit round of color C.

Next round: *[K3tog, yo, K3tog] into the same 3 st, P1, repeat from * 4 times (16 st). Cut the color C yarn, leaving an 18 inch tail. With the scrap yarn, knit 8 st.  Join a new strand of color C and *[K3tog, yo, K3tog] into the same 3 st, P1, repeat from *  to end of round. (The scrap yarn is basically holding stitches that will later become the thumb hole.)

 
Continue to make Daisy Stitch stripes as before, starting with a knit round of color D. Make 5 stripes; ending with color B.

Change to color A and #7 needles.

Knit 1 round.

Next round: *K1, P1, repeat from * to end of round.

Repeat the last round until ribbing measures a half an inch.

Bind off in rib pattern.

Knitting the Thumb

With a #7 needle pick up the 8 st below the scrap yarn. Weave the needle over and under every other stitch so that you're picking up the right side of each stitch.

With another #7 needle, do the same thing for the 8 st above the scrap yarn. These stitches are a little trickier to see. Pick up (from the right) 1 from the K3tog cluster, 1 purl, 3 from a K3tog, 1 purl, and 2 from a K3tog.

With a #8 needle and the 18 inch tail of color C, work across the bottom 8 st as follows: *[K3tog, yo, K3tog] into the same 3 st, P1, repeat from * 1 more time.

Next round: With a #8 needle and color B, start at the first stitch of the bottom needle (the one holding the color C stitches just worked) and knit 7. With another #8 needle, K1, pick up 2 st between the 2 needles, K4. With another #8 needle, K4, pick up 2 st. (7 st on first needle, 7 st on second needle, 6 st on third needle, ready to work in the round.)

Next round: Slip 1, P1, *[K3tog, yo, K3tog] into the same 3 st, P1, repeat from * until 2 st left, slip first stitch from beginning of round onto the needle that has 2 st left on it (so that now there are 3 st on the left needle), [K3tog, yo, K3tog] into the same 3 st. Slip the last stitch from the right needle to the left needle.

Next round: With color A and #7 needle, knit.

Next round: *K1, P1, repeat from * to end of round.

Repeat the last round until ribbing measures a half an inch. Bind off.

Weave in all the ends and block if you want.

Free your fingers!