Source: Martha Stewart Living, December 2009
This technique is used to knit our Sequined Mohair Stocking.
Before you begin, transfer stitches onto 2 knitting needles, with half the stitches on each needle. Arrange needles side by side with their points facing the same direction.
As if to knit, insert the tapestry needle into first stitch on front needle, then slip off stitch.
As if to purl, insert the tapestry needle into next stitch on the front needle, leaving the stitch on the knitting needle and tugging the yarn through with your tapestry needle.
Switch to the back needle, inserting the tapestry needle into the first stitch as if to purl before passing the stitch off the knitting needle.
Next, as if to knit, insert the tapestry needle into the next stitch on the back needle, but leave the stitch on the needle.
Repeat until all stitches have been grafted together.