Put your needle back into the fabric about 1/4" (or whatever size you want the blanket stitches to be) below where the thread comes out. Bring the needle out again where the thread comes out so that you have one vertical stitch. Now put the tip of the needle in slightly to the left of the bottom of the stitch and bring it out again slightly to the left of the top of the stitch.
Make sure that the needle comes out above the thread by holding the thread down against the fabric. Pull the thread gently (not too tight) and the thread will loop around the stitch you have just made. It makes a shape like an upside down U.


