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You can definitely do that. Your blanket will not be itty bitty, but it will be child size. What you can do is make the initial starting chain longer, and make the body as long as you want before starting the decrease for the cocoon part. Let me know if you have more questions.
I would love to help you. Would you be able to clarify your question? Are you asking how to chain, how to do the dutchess lace stitch, how to crochet in general?
I don't know how to knit, it is different than crochet. You might be able to find a knit pattern that looks similar.
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