Another Doily Question

I finished the last doily and it came out great! Thanks KT for the help with the crochet edging.
Now I'm on to another doily and am confused on what I'm suppose to do on the 16th Round. It says:

16th ROUND: K 1 st to last needle, * K 2, y o, K 3 tog, y o, K 2, y o, K 2, y o, K 3 tog, y o, K 1, K 1st st of next needle onto same needle, y o, repeat from * all around ending round with K 2, y o.

I tried knitting all the way around until I got to 1 st before the last dpn and then started the repeat, but that didn't seem to work. I'm not understanding what " K1 st to last needle" means.

Here's the pattern: