Knitting with dogs sounds like an interesting skill, however, I've yet to get either pup to pick up the needles. Also, they're a bit large to manipulate into a fabric.
Training went something like this:
Me: bring it.
Dog: bring what?
Me: The needles
Dog: Needles? You're taking me to the vet, no......
Rather than follow through with that idea, I switched to teaching them to leave my yarn alone. The most important words in a Dog's vocabulary are: Sit, Stay, and Leave It.
Leave it was taught by saying those two words whenever the pup's nose went to something I didn't want him to pick up. If he looked at me, I praised him and petted him. If the pup picked up the item, I gently took it from him and said "Leave it." A few rounds of this game with random treats and the pup leaves my yarn alone.
If only I can come up with a command that means "No I don't want your slobber encrusted tennis ball in my knitting basket."