We start knitting 130 stitches from down side. After gatret stitches for 2 rows, we knit plain 60 stitches, then 1 stitch purl, 8 plain stitches, 1 purl stitch and knit plain 60 stitches. At every row, at both sides of 8 stitches in the middle, we decrease 1 stitch. Every 8 rows, we decrease 10 stitches on both sides, 1 stitch from middle. At the same time, we divide the 8 stitches in the middle as 4+4 and we knit double cables (horse shoe cables). When we repeat this for 8 times, we divide the collar of poncho.

We knit double cables once more and put our stitches aside for a while. We knit the back side of poncho just the same way as front side, but we do not separate collar. Then, we take all stitches to the knitting needle and we knit simple eyelet stitch 1 row for the cord.  We knit the hood plain 25 cm. We finish. We apply frill yarn to hemline and hood.