Make Scallops is a traditional technique used by the Chinchero people of Peru. This is step 2 of the Scallop trim used in Chinchero Mini and Chinchero Hats. If you have not already done so, you will find the instructions to make a two-color chain.
Make Scallops, Part 1
Work this part of the scallop with C1 (or a third color, C3).
You should be holding the chain in your left hand with it oriented so that the row of non-overlapping loops of C2 is framed by C1. The C1 portion of the chain is facing towards you.
*Set up: Insert the right needle into the first C2 loop from back to front, then into the next C2 loop the same way. Place the left needle into the second C2 loop from front to back so the left needle is behind the right needle.
Create Stitch: Wrap C1 around the right needle back to front and pull through to create a stitch (this is a purl, not a knit). Keep C1 in front of the work.
PU Loop: Insert the right needle into the next C2 color loop on the chain from back to front then insert the left needle behind the right, into the same loop.
Work Create Stitch and PU Loop until there are 5 stitches on the right needle (one will be an unworked loop for the very first scallop only), ending with Create Stitch. Continue to BO1.
BO1 by bringing the 2nd stitch on the right needle over the first stitch and off the needle. 4 sts
Work PU Loop and Create Stitch again. 5 sts
BO2 by pulling the second and third stitches over the end st. 3 sts
Fill In Scallops
Knit backwards: Move C1 yarn to back of work. Working from Left to Right, insert the left needle into the back of the first stitch on the right needle and wrap C1 from the back over top of the left needle and pull the yarn through to create a stitch on the left needle. Repeat in remaining 2 sts.
Move the yarn to the front and purl the 3 sts on the left needle. PM to mark the end of the scallop.
Make Scallops, Part 2
Next Scallop: Pick up the two C2 loops as in Set up and repeat from *.
Work for the correct number of scallops for a hat of the desired size.