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It is the results of winding a skein on a ball winder. It's frequently called a 'cake.'
@lorddrake, I was told to knit with the yarn in ball (or cake) form, but if I'm not going to use it for a while I should store it in skein form. Apparently the yarn is under a lot of tension in cake form, which could stretch out the yarn.
Cute Knitted Hat in Diagonal Half Linen Stitch
Cute Knitted Hat in Diagona...View Instructable »
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