Begin by matching the colored spools of thread at the top to the corresponding color blocks in the knitting pattern. Drag the thread from a spool to a block of the same color to fill it in. When a spool runs out of thread, you must create a new one by solving the puzzle at the bottom. In the puzzle, slide spools of the same color into each other to combine them. Continue combining spools of a single color until a full spool is created, which will then appear in an empty slot in the top knitting area. Use the newly created spools to continue filling the knitting pattern. Repeat this process of knitting and solving the puzzle until the entire pattern is complete and the "Level Complete!" screen appears.
The numbers on the spools in the puzzle area (e.g., '3', '8') indicate how many more spools of that color need to be merged to create a full one. The puzzle is a maze with fixed paths, so you must plan your moves carefully to bring the correct spools together.
Focus on creating one color at a time in the puzzle to avoid clutter and make it easier to combine them. Use empty spaces in the maze strategically to maneuver spools around others that are blocking the path.