Ta-da!
Here is the journey of the second lace blanket square.
It's the one I knit from the inside-out... very successfully, if I may say so. I think I am going to have to knit a shawl with this technique at some point... I like the fact that you can just stop when you run out of yarn. However, the fact that the number of stitches on your needles increases every round is a little discouraging.
So. . . here is what it looked like pre-blocking. All scrunched and squirmy, like a newborn:


And then, once blocked . . . oooh, aaaaaaahhhhh:

Oh yes . . . what a diff'rence a day of blocking makes!
Project Details:
Yarn: Lorna's Laces Shepherd Sport in Tahoe
Needles: 3.75mm circulars the whole way, with some magic loop - none of this ridiculous starting out on 5 dpns.
Pattern: Unvented by me, based on Elizabeth Zimmerman's squares. Increase every other row with yos at "edge of each needle" (or using stitch markers/your brain on circulars). Row of eyelet = *k2 tog, yo*, keeping increasing pattern. 3 Rows of Garter stitch in the middle.
I love this technique, and will have to find myself some lace patterns to make a square shawl.