Step Three - Toes, part 2
Knit into the front of the first stitch, and without slipping the stitch off, knit into the back of the same stitch. Then slip the old stitch off your left needle. This is a M1 (make one) increase.
Now knit across to the second to last stitch, and M1 again.
Knit the last stitch and turn your work (remember to rotate your work, not flip it over.)
Repeat the same increases on the next needle.
At this point, you can begin to see the toes forming a pocket between the circular needle cables.
Hold the needles so that the pocket begins forming and pointing down.
Knit all stitches for the next round.
Repeat the increase round, and the knit all round until there are 64 total stitches.