Along with a nice selection of other original and free knitting patterns, this site offers a fun and great stash-busting pattern for Little Dudes - little baby-sized dolls. These knit dolls are made using double pointed needles and a step-by-step and well-illustrated tutorial is included for knitting with double pointed needles.
When knitting with double pointed needles your yarn will tend to twist, every few rows hold up the yarn and let the yarn unwind to keep your knitting flat and even.
Another great knitting blog that shares some very original free knitting patterns. The lion baby bottle warmer would make a great baby shower gift. Then there's the wrist yarn holder (knit on the go), the baby block soft toy, and the lace purse ... and this was all in the first few months the blog's been online.
Most knitted purse patterns can be used to create a larger purse simply by using thicker yarn or using multiple strands of yar. The trick is to remember to modify the length of the strap or handle to accommodate the larger size.