This tutorial shows a slightly different way to make a granny square dishcloth. It is my favorite method because it works to “hide” that initial chain that counts as the first dc in each round.
As Abigail mentioned, you need 100% cotton yarn. I like Lily’s Sugar and Cream because it is widely available and reasonably priced. Lion brand yarn has a wonderful hand, but it is more expensive. Use a size "G" hook.
Round 1: Chain 4. Join with a slip stitch in the first chain to make a ring. Chain 5.
Make 3 dc in ring.
Ch 2. Make (3 dc, ch 2) twice more in the ring, catching the loose thread end.
2 dc in ring. Make a slip stitch in the 3rd chain of the chain 5 at the beginning of the round.
Slip stitch in the next chain also and then chain 5 to begin a new round.
3 dc in the space at the bottom of the chain 5.
* Ch 1. Skip the next 3 dc, (3 dc, ch2, 3 dc) in the next corner space.
Repeat from * twice more.
Ch 1. (Skip the next 3 dc. Put 2 dc in the space at the bottom of the chain 5 from the beginning of the round. Slip stitch in the 3rd chain of the ch 5.
Slip Stitch in the next chain and then chain 5, as before.
Round 2: Put 3 dc at the bottom of the chain 5. Ch 1. Skip next 3 dc. 3 dc in the next space.
Ch 1. Skip the next 3 dc, (3 dc, ch 2, 3 dc) in the corner space.
* (Ch 1, 3 dc) in the next space. Chain 1. (3 dc, ch 2, 3 dc) in the corner space. Repeat from * around.
Ch 1. 2 dc in the space at the bottom of the beginning ch 5. Sl st in 3rd ch of ch 5. Sl st in the next ch also and then ch 5, as before.
Round 3 and more: Begin the round as in previous rounds with (3 dc, ch 1) in the space immediately below the chain 5. Make (3 dc, ch 1) in each space across the sides and (3 dc, ch 2, 3 dc, ch 1) in each corner space. To close the last corner, put 2 dc in the space at the bottom of the chain 5 from the beginning of the round. Slip stitch in the 3rd chain of the ch 5, and in the next chain. Chain 5 to start a new round.
Finish by closing the last corner with 2 dc in the space at the bottom of the chain 5. Slip stitch in the 3rd chain of the chain 5. Cut the thread and pull through. Weave in the end.
I usually do about 7 rounds, including the initial round in the ring. But you can keep going if you like a bigger size. After the last round, you can stop, as Abigail did, and do a loose single crochet in each stitch around the entire dishcloth, to make a more finished edge. I want to show you how I like to finish a granny square dishcloth.
I change colors on round 7 and do this last round with the edging color.
To start the edging round, instead of a chain 5, I chain 4. Then, I put 2 dc in the corner space immediately at the bottom of the chain, as before. Ch 1 and one more dc in the same space.
* Skip next dc. Dc in next 2 dc. Dc in the space. Repeat from * across to the space that turns the corner. (1 dc, c 1, 2 dc, c 1, 1 dc) goes in the corner space.
Repeat from * across the sides, turning the corners as explained until you read the beginning chain 4. Finish off. You can stop at this point also, but I like to add a further lacy edging in the same color as the middle of the granny square.
Add color with a chain 4 between the 2 dc in the corner. Skip dc. Slip stitch in the next space. * (Ch 4. Skip next stitch, sl st in the next st). (The photo actually shows a single crochet in this stitch. I sometimes do this on the corners because it makes the edge lie better at the corner. But you can just do slip stitches if it is easier to remember.) Repeat from * all the way around, making sure a slip stitch goes into each corner, between the 2 dc. Put the last slip st next to the beginning chain 4. Finish off and weave in all the ends.
I like to "block" my crochet. It just looks so much more finished and pretty. I adjust and square up all the stitches and pull the lacy loops out a bit. Then I hold the steam iron just barely over the cloth and let the steam flow for a minute or two. Then, let it dry in place.