That's a sleeve?

The sleeve is getting bigger and bigger.

And I have a ton of stitches on my needle. How does that blob become a sweater with sleeves?
Here it is roughly folded. Imagine yourself knitting merrily across the Back of the sweater in pattern, you hit the shapeline (the diagonal line), turn a 90 degree corner (made by increasing) and work the plain knit part (which is the sleeve) knitting around under the arm, turn another corner and work across the Front in pattern to the buttonband edge. Weird but wonderful.
I have worked a 3-Needle Cast Off along the shoulder from the shapelines to the neck edge and my sleeve is made. The sleeve stitches are open and sitting on spare yarn ready for me to slip my short circular needle into the stitches and work the sleeve down to the cuff.
I worked the 3-Needle Cast Off on the right side of the cardigan because I think it adds a nice ridge.

Can't seem to get the colour to come out quite right, especially when I'm taking pictures in the late afternoon when it's getting dark. You can see that the sweater is coming along. Still some ways to go. I have to finish the neckband and knit both sleeves down to the wrists.

This shaping comes to you from the brain of Elizabeth Zimmermann (http://www.schoolhousepress.com/) from her Knitting Workshop book. It's the nalgar shaping and fun to do. Especially when it stumps your knitting friends. That, apparently, was one of her favourite things.
-Deb