It is a sock-in-progress holder. It comes in various sizes so I've chosen the one that fits perfectly my beloved KnitPicks dpn :o)
I also had to start knitting some socks before showing off!
I've done the foot plain, turned the heel and I now have to decide on a pattern for the leg.
The yarn, hand died 100% pure Blue Faced Leicester from Laal Bear, is a pleasure to work with.
The Knitzi is both beautiful and extremely practical so some of my fellow knitters at the knitting group have asked Santa to bring them one ;oD