After considerable pondering, I've decided to forgo the red knit for now, and make my next project a top. It is still a Khaliah Ali design from Simplicity. I think making the top will give me a better idea of the alterations I will need to make, rather than the knit. I may even make a skirt from a Burda pattern I picked up last week.
I love the bell sleeves in this pattern. I am going to go for the surplice top design with bell sleeves, the second design in the second row of the drawings. The fabric I am going to use is from Hancocks, on one of their sales late last year. It is teal with a black imprint that resembles lace.
Progress: I have steamed the fabric and dried it, am going to get the pattern pieces picked out and trimmed today.