The Yarn Company
This was the first yarn shop I ever visited after learning to knit over 2 years ago. I met and fell in love with Manos del Uruguay hand spun and hand dyed yarns. Bought a pretty rusty hued yarn and made my first scarf that was way too long, but I love it anyway. I also made my first overboard purchase of yarn at The Yarn Tree. I spent a fortune on 3 types of yarn needed to make a poncho, which I never wore because it reminded me too much of a blanket. I still have the poncho and plan to take it out and make something else with the yarn one of these days.
The Yarn Tree
Favorite yarn shop in Brooklyn. I often go there after brunch with Clay when we're planning to sit around Spike Hill for a few rounds when we're hanging out in Williamsburg. The shop is owned by a woman named Linda and it's more than just a yarn shop. Linda teaches spinning, weaving and felting, among other things. I like Linda. I second time I visited The Yarn Tree I asked her why she doesn't carry Skacel Addi Turbo needles and she told me, "It's my shop and I don't like those needles so I don't carry them." Now that could have rubbed some people the wrong way, but you know what, she's right. If I had my own shop I'd probably not carry things I don't like (like acrylic yarn or other unnatural fibers).
String
Recent discovery. Last I'd heard, this shop was uptown in the east 70's, but one day I was walking from running class along 82nd Street between Park and Lexington and there it was. I'd heard this shop carried beautiful luxury yarns that I probably shouldn't buy because they're so expensive. Yeah, it was all true. They carry cashmere, luxury merino and even qiviut ($85 a skein!). I recently bought a yarn called Kersti by Koigu that is a little less expensive than Koigu's Painter's Palette. It knits up beautifully and it is oh so soft and very luxurious. I'm making a baby blanket for a couple of friends who are due in December. I will certainly buy more of this yarn from String.

The women who work there are very nice and I found them helpful when trying to choose colors. I can be a retard when it comes to picking colors that work well together so I always appreciated when people are ready to help. I was disappointed that they don't sell the store patterns unless you buy the yarn. Yes, I know a lot of shops do this, but buying the yarn for the pretty sweater they have hanging in the cash register area would cost a small fortune (Looked like cashmere to me). I'd love to have the pattern but make it with a cheaper yarn. They do have a knitting pattern of the month club that costs $135 a year.
Knit New York
I love this place. It's near my office. They have Balthazar's pastries and good unsweetened iced tea. The yarn selection isn't very exciting, but it'll do. They carry Koigu, Manos, Noro, Debbie Bliss, Cascade. The old standards. Nothing to complain about that. There just isn't anything unusual there. Nothing I absolutely have to have (which could be a good thing), but they have what I need. They do have a pretty good 20% off bin that sometimes has some cool stuff. This is another place I have been known to over spend. I once bought some Lickety Split bulky from Alchemy yarns because I liked the sweater I saw hanging in the window. I made the sweater but didn't like how it turned out. I thought the fit was too tight. I only wore the sweater once. Who knows, maybe it fits better now that I've lost weight. It was fun making the sweater and the yarn lived up to its name.
The Point
Another knitting cafe. They're selection is similar to Knit New York. I don't know where they get their pastries because I haven't had them, but the cappacino is pretty good there. In addition to yarn, The Point sells Crystal Palace needles (which I like) and neat knitting bags for carrying projects.
purl
purl is pretty. It is the prettiest yarn shop in New York. They have a great selection. Habu Textiles. Classic Elite Yarns. Blue Sky Alpacas. Louet. Rowan. It's all here. They've got my addi turbo needles. They've got a good selection of knitting books, including Last Minute Hand Knit Gifts, by one of the shop's owners. The prices here are not cheap, but they do carry quality yarns. Their website does have a sale section. Right now, Classic Elite's Forbidden in 100% cashmere is on sale for $30 down from $50 (for a 65 yard skein). Man, that is some expensive yarn, but you know I'm eyeing it in Natural or Marled Seagrass.
Downtown Yarns
I discovered this shop on my way to meet Clay at Croxley Ales. It's a small shop that carries some of the usual suspects. Looking for Brown Sheep yarn? They've got every color at Downtown Yarns. They also carry Blue Sky Alpacas, Berocco, Classic Elite, Rowan, Koigu, Noro, and Schaeffer. As a matter of fact, I first encountered Shaeffer at Downtown Yarns. I added a giant skein of a blue and gold colored yarn to my stash. Of course I have yet to use it. And let's not forget the Filatura Di Crosa I bought in a nice chocolate brown with yellow and orange accents.