This is the most accurate description I can give of the pattern. It is in a magazine (I think it is in an Interweave Knits), but I am really not sure. Any help in locating the pattern would be greatly appreciated. I've been through every magazine and book I own and I just can't locate it.
I think you may be referring to Broderie! It is online in the Twist Collective Winter 2008. http://twistcollective.com/collection/index.php/component/content/article/60-winter-2008-patterns/149-broderie-by-connie-chang-chinchio