Here's a closer up:
I had some trouble casting off the lace loosely enough until I remembered reading about some kind of yarn over bind off. I didn't bother going to look for it online, but just experimented on my own. This is what I came up with:
Up next? I have to pick up stitches along the straight edge and start knitting up the skirt. But I'm waiting for the right size needles to arrive. (Remember I ordered 40 cm length instead of 40 inches?) I ordered new ones a few days ago, so they should here soon!