I happened to be on ravelry(surprise, surprise lol;) and I started to come across a lot of projects about domino knitting. So I became enamored with the look of these type of mitered squares, and I searched out numerous projects and information on domino and modular knitting techniques. I had it in mind to buy Domino Knitting by Vivian Hoxbro, but once I really looked around in the book stores and couldn't find it anywhere to look through . I became frustrated and decided that I could possibly come up with a technique that I liked on my own somehow. Most of the mitered square tutorials that I was coming across were a lot bigger than the size I was wishing to make, so I knew modifications must be made. That being done,then I began to fiddle with the arrangement of the blocks so the squares would be set like diamonds through out the blanket, and of course all the lines had to "fly" in the same direction for my obsessive nature. Fiddle and tinker I did, and a pattern or unpattern has been born. Whether or not anyone else ever uses it or not is to be seen, but for now it is providing me with a lot of pleasurable knitting.
Making Miters Blanket
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Materials Needed:
size 5 needles (I'm using 2 size 5 dpns because I started off with a pair of circ's, but the cord between the two needles kept getting in my way)
small scissors
tapestry needle
size G crochet hook if you decide to do a single crochet edging
Abbreviations:
K-knit
k2tog-knit two stitches together
Your yarn can be scraps or you could pick some in specific colors because you want it to match a room in your home, or for a baby, or another family member( you decide). The amount you will need will vary depending on how big you plan to make yours. I am using worsted weight yarn, this too can easily be changed. My blanket is being made with Patons Classic Wool Merino in 5 different colors that I had bought awhile back in colors that coordinate nicely in my living room, especially with my window valances which makes me happy :) But scrappy blankets like this one are very pretty too. The overall layout of this blanket will look somewhat similar to this simple little drawing, with one block measuring about 2"x 2".
Shall we proceed ? The directions (as much as they can be called that lol ;)
The First Square: Cast on 20 sts with your preferred cast on method--TIP: your decreases will always occur on the right side of your work, with the knit rows occurring on the wrong side.
*The Decreases:
Row1: K8, k2tog twice, K8
Row2: Knit all stitches
Row3: K7, k2tog twice, K7
Row4: Knit
Row5:K6, k2tog twice, K6
Row6: Knit
Row7: K5, k2tog twice, K5
Row8: Knit
Row9: K4, k2tog twice, K4
Row10: Knit
Row11: K3, k2tog twice, K3
Row 12: Knit
Row13: K2, k2tog twice, K2
Row14: Knit
Row15: K1, k2tog twice, K1
Row16: Knit
Row17: k2tog twice
Row 18: Knit
Row 19: Cut old color leaving a long tail for weaving in later, leaving 2 loops on the needle, then with new color k2tog once. * Note, on all other squares you'll just knit 2 together without cutting the color because you won't join the next square onto the top like this one and you'll cut the yarn as soon as you are done with the square and pull tight. You'll see.
The First Square is done and now it's time to join Square 2.
Joining Square two: You still have one stitch on your needle from your first square, count this as stitch 1 and pick up 9 more stitches along the side left to your needle, then cast on 10 more stitches turn and knit across all stitches on your needle. Then follow decrease method for first square. When you are finished with the second square cut the yarn and pull tightly to finish off. Now you have two squares that look like this:
Now it gets a little bit trickier for me to explain how I did the rest of the first row. So right off I'm going to give you diagrams to hopefully help you (and me) hopefully understand better :)

Square 3: On the corner indicated in the first diagram below on square one pick up 10 stitches
turn and knit across those 10 stitches and cast on 10 more stitches onto your needle. Turn and continue decrease method as for first square. Cutting yarn and pulling tightly to secure.

Square 4: Pick up 10 stitches starting where squares 1 and 3 meet
and cast on 10 more stitches onto you needle
Turn and knit across all 2o stitches
Turn and continue in decrease method as for first square
Cutting yarn and pulling tightly to secure as soon as you are finished with your last knit 2 together.
Continue squares 3 and 4 in this manner until your foundation strip of "diamonds" is the length you want. Ending though with a square 3 for your very last square on your first row.
Your next row or second row of squares will begin at the end you've just completed your last square 3 at. So you will begin on your right end of the strip of diamonds. With right side of your work facing at all times on this blanket of course, pick up 20 stitches in the "V" where the last 3 squares in the row you've just completed meet. If that makes no sense at all I'll first try to explain it in words, and then with a diagram. Then hopefully you can follow my lame brain. Word Version: 10 stitches down the first side starting at the top of your last completed square 3. Then 10 stitches up the second side starting in the "V" where the new color of that square begins. If you don't follow that maybe you can put 2 and 2 together with this diagram.




The next step is to do what it says in the above picture and turn and knit across all 20 stitches. Then turn and continue in decrease method as per first square.

The next row will start on the left end of the blanket with an end square needing to be made. We will do this the same way we did our previous square 4 so refer back to that. If you did not do these extra squares at the beginning of the rows, your blanket would grow into a triangular shape instead of a square or rectangle like we desire. Continue picking up squares right on down the row in the "V" as usual. 
The next row again begins on the right end of your blanket, but this time you need to begin right off with making an end square as well. But this one will be worked like our previous square 3 was worked so please refer back. Then of course you'll continue picking up squares right on down the row in the "V" as usual.
You'll repeat these last 2 left and right end starting rows until you've reached a length that you desire your blanket to be. Then you may or may not wish to work an edging all around your blanket. If you want a nice simple suggestion and what I myself am contemplating, an easy single crochet all the way around and call it a day :)
Tips: You can make your squares as big or as small as you'd like to: always divide the number of stitches you cast on by 2 and then subtract 2 from that number and there is where you knit to to do your 2 knit 2 together decreases.
Because there will be many ends to contend with, you may want to consider doing battle with them on a regular basis.
I have decided once I complete a row of diamonds, and before I begin a new one I'll weave in all those happy little ends. Look at them in a positive light too, and if you keep up with them now you won't have all of them staring you down when the knitting is finished, right?
This is my first strip and a little bit of a test of the second strip beginning at one end. Just to give you an idea.

I've read and reread this post several times for errors, but "human error" being what it is I'm sure I have missed some mistakes. If you find some do not hesitate to let me know about them, and I'll fix them promptly. Thanks in advance if you do find some:)