The
Algerian eye, which is also called the star stitch or star eyelet, is a
variation on the eyelet that includes small stitches so that there aren't so
many stitches going down into the center hole. In my diagram I've given you two
sizes, but you can experiment with a variety of sizes (and shapes!)
This stitch is usually not stitched so tightly as a regular eyelet. You will find this stitch in alphabets, by the way, in early samplers.
Where I can, I prefer to substitute the Algerian eye for a regular eyelet, because I am usually interested in a smoother effect, created here by having fewer stitches in the center hole. Even so, I generally gently enlarge the center hole with my needle or the tip of my laying tool before I work the stitch.
I've stitched a sample in both sizes, as in the diagrams. I like the effect of the Watercolours, as it swirls around the eyelet. Consider alternating colors or threads. However, changing the thread that you use makes a big difference in this stitch. I think this stitch would be particularly nice as a wall or roof. It also is nice for single square motifs, like Christmas packages or corners for a border.

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