Cast on 130 (140) sts. Place marker and join, being careful not to twist.
Rnd 1 Knit.
Rnd 2 Purl.
Rnd 3 Knit.
Change to rnds of St st and work even until piece measures 1½ inches [4 cm] from beg. Continue in St st, decreasing 10 sts evenly spaced around – 120 (130) sts. Work even in rnds of St st until piece measures 10 (11) inches [25.5 (28) cm] from beg.
*K 1, k2tog; repeat from * around as many times as possible; k any remaining sts – 80 (87) sts.
Work even until piece measures 12½ (13½) inches [32 (34.5) cm] from beg.
Repeat Decrease Rnd – 54 (58) sts.
Work even until piece measures 14 (15) inches [35.5 (38) cm] from beg.
Repeat last 2 rnds for 1 inches [2.5 cm].
Bind off all sts loosely.
With larger hook, join yarn to lower edge of Capelet. Working along cast on edge, (ch 10, slip st in next st) around. Join with slip st. Fasten off. Weave in ends.
With smaller hook, ch 43.
Dc in 5th ch from hook, *ch 1, skip next ch, (dc, ch 1, dc) in next ch (V-stitch made); repeat from * across – 20 V-stitches. Turn.
Ch 3 (counts as first dc), 5 dc first in ch-1 space, *sc in next ch-1 space, 6 dc in next ch-1 space (shell made); repeat from * across – 20 shells. Fasten off, leaving long tail.
Thread needle with strand of yarn and weave down through last st to base of Rosette. Starting at that end, roll first shell tightly to form center bud; anchor at base of shell with 2 sts. Roll remaining strip to form Rosette, then secure by stitching in and out through layers of foundation ch at bottom of Rosette. Sew to front of Capelet.