Increase in K1 (W2): K1, k into front and back of YO
My instructions state the following: Inc (Increase) in K1 (W2): Knit into knit st, then knit into front & back loop of YO: 3 sts made in 2 lps.
I'm totally lost with this type if increase. HELP
Ok, let do it step by step. First, knit the first stitch normally. Then knit the YO normally, but do not slip the stitch off the needle yet. Insert your right needle through the remaining loop (back loop) and knit this one. Now you can slide both sts just knitted off the left needle.
I've made a video on how to knit in front and back of the same stitch. I think it will help explain better than just words. In your case, the YO should look a bit bigger than the one in the video but it is the same concept.
I hope this help answer your question.
Have a wonderful day!
How To Knit Into Front And Back Of The Same Stitch Tutorial Video