PSP (Purl, Slip, Pass stitch over): P1, slip this stitch back to left needle, pass second stitch on left needle over first stitch.
Lace Pattern (Worked over a multiple of 4 sts + 3):
Row 1 [RS]: K2tog, yo, [ssk, k2, yo] to last st, k1.
Row 2 [WS]: P1, [yo, p2, PSP] to last 2 sts, yo, p2tog.
Rows 3-4: Work as for Rows 1-2.
Row 5 [RS]: K1, yo, [k2, k2tog, yo] to last 2 sts, ssk.
Row 6 [WS]: PSP, [yo, p2tog, p2] to last st, yo, p1.
Rows 7-8: Work as for Rows 5-6.
Repeat Rows 1-8 for Lace Pattern.