This is a variation of blanket stitch that carries a visual similarity to the up and down blanket stitch. It can make a good bordering or edging pattern.

You need to know the blanket stitch to continue with this tutorial. I will work between two horizontally parallel stitch lines to illustrate this stitch.

german_knotted_blanket_stitch_1       german_knotted_blanket_stitch_2
Fig 1: Start by making two blanket stitches close to each other, as shown. Then, slide the needle under both the stitches without plucking the fabric below.   Fig 2: Take the needle out and tighten it to form a loop above both the blanket stitches. Next, continue to make couples of blanket stitches and loop them around.
german_knotted_blanket_stitch_3   Fig 3: A finished portion would look like this.