This pattern is an adaptation of one that appeared in the Queenslander on January 6th, 1917. I have made major changes to the diamond section to make it flow more naturally from one repeat to the next.
In Words
Special Abbreviations
Sl1 wyif = slip 1 stitch purlways with the yarn held at the front of the work, as if you were going to purl the stitch.
bunny ears dec = This is a decrease that turns 3 stitches to 2. K2tog leaving second stitch on right needle. Knit third stitch. Pass second stitch over third stitch. Here is a video that shows how to work it.
Pattern
Cast on 35 stitches and knit one row. Commence from row 1.
Row 1 (WS): Sl1 wyif, k3, yo, p2tog, k2, [yo, k2tog] twice, k5, [k2tog, yo] twice, k3, yo, p2tog, k7, yo, k2 (36 sts).
Row 2: Yo, k2tog, k8, yo, p2tog, k18, yo, p2tog, k4.
Row 3: Sl1 wyif, k3, yo, p2tog, k3, [yo, k2tog] twice, k3, [k2tog, yo] twice, k4, yo, p2tog, k8, yo, k2 (37 sts).
Row 4: Yo, k2tog, k9, yo, p2tog, k18, yo, p2tog, k4.
Row 5: Sl1 wyif, k3, yo, p2tog, k4, [yo, k2tog] twice, k1, [k2tog, yo] twice, k5, yo, p2tog, k9, yo, k2 (38 sts).
Row 6: Yo, k2tog, k10, yo, p2tog, k18, yo, p2tog, k4.
Row 7: Sl1 wyif, k3, yo, p2tog, k5, yo, k2tog, yo, sl1-k2tog-psso, yo, k2tog, yo, k6, yo, p2tog, k3, k2tog, [yo] twice, k2tog, k3, yo, k2 (39 sts).
Row 8: Yo, k2tog, k6, p1, k4, yo, p2tog, k18, yo, p2tog, k4.
Row 9: Sl1 wyif, k3, yo, p2tog, k6, yo, k3tog, yo, k2tog, yo, k7, yo, p2tog, k1, [k2tog, [yo] twice, k2tog] twice, k2, yo, k2 (40 sts).
Row 10: Yo, k2tog, k5, p1, k3, p1, k2, yo, p2tog, k18, yo, p2tog, k4.
Row 11: Sl1 wyif, k3, yo, p2tog, k7, yo, bunny ears dec, yo, k8, yo, p2tog, k7, k2tog, [yo] twice, k2tog, k1, yo, k2 (42 sts).
Row 12: Yo, k2tog, k4, p1, k8, yo, p2tog, k19, yo, p2tog, k4.
Row 13: Sl1 wyif, k3, yo, p2tog, k7, k2tog, yo, k2tog, k8, yo, p2tog, k1, k2tog, [yo] twice, k2tog, k7, yo, k2tog, k1 (41 sts).
Row 14: Yo, k2tog, k10, p1, k2, yo, p2tog, k18, yo, p2tog, k4.
Row 15: Sl1 wyif, k3, yo, p2tog, k7, yo, bunny ears dec, yo, k8, yo, p2tog, k7, k2tog, [yo] twice, k2tog, k1, yo, k2tog, k1 (42 sts).
Row 16: Yo, k2tog, k4, p1, k8, yo, p2tog, k19, yo, p2tog, k4.
Row 17: Sl1 wyif, k3, yo, p2tog, k5, k2tog, [yo, k2tog] 3 times, k6, yo, p2tog, k1, [k2tog, [yo] twice, k2tog] twice, k1, k2tog, yo, k2tog, k1 (40 sts).
Row 18: Yo, k2tog, k5, p1, k3, p1, k2, yo, p2tog, k18, yo, p2tog, k4.
Row 19: Sl1 wyif, k3, yo, p2tog, k4, k2tog, yo, k2tog, yo, k1, [yo, k2tog] twice, k5, yo, p2tog, k3, k2tog, [yo] twice, k2tog, k2, k2tog, yo, k2tog, k1 (39 sts).
Row 20: Yo, k2tog, k6, p1, k4, yo, p2tog, k18, yo, p2tog, k4.
Row 21: Sl1 wyif, k3, yo, p2tog, k3, [k2tog, yo] twice, k3, [yo, k2tog] twice, k4, yo, p2tog, k5, k2tog, k1, k2tog, yo, k2tog, k1 (37 sts).
Row 22: Yo, k2tog, k9, yo, p2tog, k18, yo, p2tog, k4.
Row 23: Sl1 wyif, k3, yo, p2tog, k2, [k2tog, yo] twice, k5, [yo, k2tog] twice, k3, yo, p2tog, k6, k2tog, yo, k2tog, k1 (36 sts).
Row 24: Yo, k2tog, k8, yo, p2tog, k18, yo, p2tog, k4.
Row 25: Sl1 wyif, k3, yo, p2tog, k1, [k2tog, yo] twice, k7, [yo, k2tog] twice, k2, yo, p2tog, k5, k2tog, yo, k2tog, k1 (35 sts).
Row 26: Yo, k2tog, k7, yo, p2tog, k18, yo, p2tog, k4.
Rows 1 to 26 form the pattern. Repeat for the desired length.
Charted
Special Notes
The bunny ears decrease decreases 3 stitches down to 2
The extra stitch created on row 11 is decreased away on row 13
The extra stitch created on row 15 is decreased away on row 17
Pattern
Cast on 35 stitches and knit one row. Commence from row 1.
Rows 1 to 26 form the pattern. Repeat for the desired length.