This is pretty much the same pattern stitch that I used on the little crochet looking hat, except I went up several needle sizes and worked only one plain round (instead of two) between pattern rows - and of course, worked it in a single color.
Here's the pattern stitch (multiple of 3 plus 1):
Row 1: k1,* yo, slip 1, k2, pass the slipped stitch over the two knit stitches; rep from *
Rows 2 & 4: purl
Row 3: *slip 1, k2, pass the slipped stitch over the two knit stitches; rep
from *, end k1.
Slip stitches purlwise with yarn in back. Watch that the yarn overs don't get ahead of the slipped stitches. Otherwise easy as pie. I find this one simple enough to be relaxing, but requiring enough attention not to be totally boring.
I added a 3 st garter border at each side. It's still attempting to curl a little, so maybe I should have gone to 4 or 5 sts. We'll see if blocking helps. I'll be curious to see it it stretches out much after washing - I'm using Cascade 220, so it might.
I think this pattern could make a nice baby blanket, or work well in cotton for a market bag (I'm not planning on making either one in the near future, but you never know.)