Instructions:
Using 4 mm needles and double knit wool, cast on 31sts in white.
Knit 2 rows.
Row 3: K3, (KW2, K3) rpt to end
Row 4: P3, (SLP, P3) rpt to end
Row 5: K3, (SLP, K3) rpt to end
Row 6: K3, (YSLY, K3) rpt to end
Row 7: K1, KW2, (K3, KW2) rpt to last st K1
Row 8: P1, SLP, (P3, SLP) rpt to last st P1
Row 9: K1, SLP, (K3, SLP) rpt to last st K1
Row 10: K1, YSLY, (K3, YSLY) rpt to last st K1
Row 11: K3, (KW2, K3) rpt to end
Row 12: P3, (SLP, P3) rpt to end
Row 13: K3, (SLP, K3) rpt to end
Row 14: K3, (YSLY, K3) rpt to end
Row 15: K1, KW2, (K3, KW2) rpt to last st K1
Row 16: P1, SLP, (P3, SLP) rpt to last st P1
Row 17: K1, SLP, (K3, SLP) rpt to last st K1
Row 18: K1, YSLY, (K3, YSLY) rpt to last st K1
Row 19: K3, (KW2, K3) rpt to end
Row 20: P1, P2tog, (SLP, P1, P2tog) rpt to end
Row 21: K2, (SLP, K2) rpt to end
Row 22: (P2tog) rpt to end
Row 23: (K2tog) rpt to end

Abbreviations used in this pattern:
KW2: Knit one while wrapping the yarn around twice
SLP: Slip one stitch purl wise, letting the 2nd loop drop if there is one.
YSLY: Yarn forward, slip one purl wise, yarn backward

Making Up
Sew on a penguin button.   
Have a look here for the buttons
Oversew the row ends and turn inside out.