This is the pattern, from Debbie Bliss...
Excruciatingly adorable, right?
I altered it slightly, using a different smocking stitch...
This is my new favorite stitch pattern. It's much easier to keep track of than the cabled version that Debbie Bliss provides. It requires practically no counting at all!
Ribbed Smock Stitch
Knit over a multiple of 8 sts + 2 sts.
Row 1: *p2, k2 to last 2 sts, p2.
Row 2: *k2, p2 to last 2 sts, k2.
Row 3: rep row 1
Row 4: rep row 2
Row 5: *p2, wrap 6 sts, k2tog, k1, p2, k2 to last 2 sts, p2.
Row 6: rep row 2
Repeat rows 1 - 4
Row 11: p2, k2, *p2, wrap 6 sts, k2tog, k1, p2, k2 to last 2 sts, p2
Row 12: rep row 2
To clarify rows 5 and 11:
To wrap 6 sts, insert your right needle between the sixth and seventh stitch on your left needle. Wrap your yarn around your right needle as if knitting normally. Pull this yarn back through and place the loop back on your left needle. After wrapping stitches, you will always k2tog, knitting this extra loop you've created in with the next proper stitch, so as not to add stitches. This is the stitch that creates the smock effect. Otherwise, this stitch pattern is nothing but a 2x2 rib, plain and simple!