My current main project is a little blanket, which is knit in the round and then steeked before adding a border to it.
Taking scissors to one's knitting is a nerve wrecking experience, but sometimes it can't be helped. What DID help was that the yarn I'm using is Lett Lopi, a yarn made in Iceland (I may, or may not, have bought copious amounts when I went there on vacation a couple of years back). Lett Lopi is also the yarn that is traditionally used for the lopapeysa, the famous Icelandic sweater. And, more often than not, those sweaters are also steeked. So, if they can do it, so can I.
After cutting through the steek it turned out to be 96 x 90 cm, without the border.
The stray blue sheep was an idea I saw in another project on Ravelry. I did work it in intarsia in the round, which is a very fiddly way of doing things, but it couldn't be helped.
I then picked up a gazillion stitches around the edge (okay, closer to 750) and started knitting the border, using all the colors again in an gradient from light to dark, and eventually back to light. In the end, the border is folded over and sewn to the other side of the steek and all is hidden.
The only issue I face now is that I'm going to run out of yarn (this border is eating up yarn, like there's no tomorrow). So, another trip to the yarn store is in order.
Oh, the hardship ;)